Chances are that if you own a flat in Alrewas you actually own a long leasehold interest over your property
Leasehold properties in Alrewas with in excess of one hundred years outstanding 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Alrewas leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alexander owned a high value flat in Alrewas on the market with a lease of a little over 61 years left. Alexander on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last month we were approach by Dr Mason Brown , who took over the lease of a purpose-built apartment in Alrewas in July 2007. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Alrewas with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease expired in 2102. Taking into account 77 years as a residual term we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
Last November we were e-mailed by Dr Muhammad James , who bought a first floor flat in Alrewas in July 2009. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparable flats in Alrewas with a long lease were in the region of £260,200. The average amount of ground rent was £65 collected quarterly. The lease ended on 14 June 2091. Having 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus legals.