Top reasons for Allestree lease extension

Why you should commence your Allestree lease extension today:

A Allestree leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Allestree residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Allestree property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Allestree will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

Allestree property with a lease extension is almost the same value as a freehold

Leasehold premises in Allestree with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders will not grant a mortgage with a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are regarded as insufficient for lending purposes.

Get in touch with one of our Allestree lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Allestree,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Allestree valuers.

Allestree Lease Extension Example Cases:

Jason, Allestree, Derbyshire

Half a year ago Jason, started to get near to the eighty-year threshold with the lease on his basement flat in Allestree. Having purchased his property 19 years ago, the length of the lease was of no bearing. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Jason arranged for a lease extension at the eleventh hour last July. Jason and the landlord in the end agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have become more costly by at least £875.

Allestree case:

Mr and Mrs. U Lefèvre owned a purpose-built apartment in Allestree in June 2001. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative flats in Allestree with an extended lease were worth £166,800. The average amount of ground rent was £50 collected yearly. The lease terminated on 23 January 2076. Taking into account 50 years left we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.

Allestree case:

Mrs Ashleigh Gunderson bought a first floor flat in Allestree in August 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Allestree with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed yearly. The lease elapsed on 23 October 2096. Considering the 70 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.