There is no doubt about it a leasehold flat or house in Allestree is a wasting asset as a result of the shortening lease. Where the residual term has, more than 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Allestree will qualify for this right; that being said a conveyancer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
| 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. |
Lease extensions in Allestree can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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.
Omar was the the leasehold proprietor of a studio apartment in Allestree on the market with a lease of fraction over 59 years remaining. Omar informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Omar to invoke his statutory right. Omar 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 Summer we were called by Mrs Ellie Nguyen , who bought a basement apartment in Allestree in May 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Allestree with a long lease were worth £260,200. The mid-range ground rent payable was £65 billed yearly. The lease finished on 12 February 2091. Taking into account 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.
In 2009 we were called by Ms N Cook who, having acquired a purpose-built apartment in Allestree in October 1998. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative flats in Allestree with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish on 22 June 2080. Considering the 55 years left we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus professional charges.