Allestree leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Flat owners in Allestree will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Allestree with in excess of 100 years unexpired on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 enhanced control over the value of your Allestree leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold owner of a conversion flat in Allestree being marketed with a lease of a few days over 61 years unexpired. Luca on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Luca to invoke his statutory right. Luca procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Autumn we were phoned by Dr Katherine David , who moved into a one bedroom flat in Allestree in August 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Allestree with a long lease were in the region of £275,000. The average ground rent payable was £45 billed every twelve months. The lease terminated in 2094. Having 69 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
Mr and Mrs. Y Campbell took over the lease of a recently refurbished apartment in Allestree in April 1997. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar flats in Allestree with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended in 2083. Considering the 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.