Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Allestree. Inevitably, the period of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Allestree have the right to extend the lease for an additional 90 years under legislation. Do give careful attention before putting off your Allestree lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you better control over the value of your Allestree leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the landlord of her basement apartment in Allestree, Emma initiated the lease extension process just as her lease was nearing the crucial eighty-year deadline. The transaction was concluded in February 2013. The freeholder’s costs were negotiated to below 500 GBP.
In 2013 we were called by Mr and Mrs. I Bennett who, having owned a first floor apartment in Allestree in March 2000. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable premises in Allestree with an extended lease were in the region of £201,200. The average ground rent payable was £55 collected monthly. The lease concluded in 2082. Taking into account 56 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.
Last year we were contacted by Mr and Mrs. N Taylor , who bought a first floor flat in Allestree in March 1995. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable residencies in Allestree with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish on 22 June 2102. Given that there were 76 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.