Allenton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Allenton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Allenton you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Allenton with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Allenton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Allenton valuers.
Off the back of lengthy correspondence with the freeholder of her leasehold apartment in Allenton, Francesca commenced the lease extension process as the eighty year threshold was rapidly approaching. The legal work completed in August 2013. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. S Bennett owned a purpose-built apartment in Allenton in September 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Allenton with a long lease were worth £240,600. The average ground rent payable was £65 billed quarterly. The lease ended on 21 September 2087. Having 62 years as a residual term we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.
Last January we were called by Dr L Rodríguez , who completed a one bedroom apartment in Allenton in October 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative residencies in Allenton with 100 year plus lease were valued about £174,200. The average amount of ground rent was £55 collected quarterly. The lease terminated in 2076. Given that there were 51 years outstanding we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.