Allestree leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Allestree residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Allestree you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Allestree leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad owned a studio flat in Allestree on the market with a lease of a few days over sixty years unexpired. Muhammad on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
In 2012 we were phoned by Mr B Mitchell who, having was assigned a lease of a first floor flat in Allestree in March 2004. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Identical residencies in Allestree with a long lease were valued around £208,600. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2083. Given that there were 57 years unexpired we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.
Mr and Mrs. P Laurent was assigned a lease of a first floor flat in Allestree in June 2002. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Comparative residencies in Allestree with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 collected yearly. The lease expired on 6 September 2103. Given that there were 77 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.