The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Allestree can extend the lease for an additional 90 years under Leasehold Reform legislation. Please think carefully before delaying your Allestree lease extension. Shelving that expense today simply increases the premium you will ultimately be required to pay for a lease extension.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Allestree can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
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 dealing with Allestree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lewis was the the leasehold proprietor of a conversion apartment in Allestree being sold with a lease of fraction over 72 years left. Lewis on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lewis to exercise his statutory right. Lewis procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last April we were contacted by Dr Isabella Simon , who owned a basement flat in Allestree in February 2007. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in Allestree with an extended lease were in the region of £181,600. The average amount of ground rent was £55 invoiced yearly. The lease lapsed on 14 June 2077. Taking into account 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.
Last June we were phoned by Mr E Morgan , who owned a one bedroom flat in Allestree in June 2008. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical residencies in Allestree with an extended lease were in the region of £285,000. The average ground rent payable was £45 invoiced every twelve months. The lease elapsed on 14 March 2097. Given that there were 72 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.