For those whose Allestree flat is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Allestree with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Allestree can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Allestree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Alex, came perilously close to the 80-year mark with the lease on his purpose- built apartment in Allestree. Having bought his home two decades ago, the unexpired term was of minimal importance. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Alex arranged for a lease extension at the eleventh hour in March. Alex and the landlord ultimately settled on sum of £5,500 . If the lease had dipped lower than eighty years, the amount would have become more costly by a minimum £1,050.
Mr and Mrs. U González bought a purpose-built flat in Allestree in July 2012. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Allestree with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished on 19 June 2088. Taking into account 63 years unexpired we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.
Ms Y Hill completed a ground floor apartment in Allestree in April 1999. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Allestree with a long lease were valued about £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish on 8 May 2077. Given that there were 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.