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 not fully appreciated in the early years due to the depreciation being disguised by increases in the Allestree property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. Most flat owners in Allestree will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure Allestree lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following unsuccessful discussions with the landlord of her purpose-built apartment in Allestree, Georgia commenced the lease extension process as the eighty year deadline was rapidly nearing. The lease extension was finalised in January 2014. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr J Robinson , who bought a studio apartment in Allestree in June 2004. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical premises in Allestree with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded in 2075. Taking into account 50 years left we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.
In 2011 we were e-mailed by Mr and Mrs. A Green who, having was assigned a lease of a recently refurbished apartment in Allestree in October 1995. The question was if we could estimate the price could be for a ninety year lease extension. Identical premises in Allestree with a long lease were worth £280,000. The average ground rent payable was £45 invoiced monthly. The lease termination date was in 2095. Taking into account 70 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.