When it comes to long leasehold premises in Allestree, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years left. Leasehold owners in Allestree with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has below 80 years outstanding, under the current statute the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Allestree,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Allestree valuers.
Finn owned a conversion flat in Allestree being sold with a lease of just over 61 years unexpired. Finn informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr Leon Gray took over the lease of a first floor apartment in Allestree in March 2006. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar premises in Allestree with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 collected yearly. The lease ended on 16 September 2103. Taking into account 79 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of professional charges.
In 2014 we were approached by Mr and Mrs. V Brown who, having completed a recently refurbished flat in Allestree in February 2000. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparable flats in Allestree with a long lease were valued around £270,000. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish on 2 November 2092. Considering the 68 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.