On the balance of probabilities where you own a flat in Allestree you actually own a long leasehold interest over your property
Leasehold premises in Allestree with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Allestree leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her leasehold apartment in Allestree, Francesca started the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work was concluded in October 2005. The freeholder’s costs were restricted to less than 700 pounds.
In 2009 we were contacted by Mr and Mrs. U Lefebvre who, having took over the lease of a first floor flat in Allestree in September 1998. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Allestree with a long lease were in the region of £267,600. The average amount of ground rent was £65 billed monthly. The lease ran out in 2091. Considering the 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including costs.
Mr and Mrs. J Wilson purchased a basement apartment in Allestree in October 2002. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Allestree with 100 year plus lease were in the region of £201,200. The average amount of ground rent was £55 billed monthly. The lease expired in 2080. Considering the 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.