It’s an underpublicised certainty that a Alrewas residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Alrewas property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Alrewas will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Alrewas with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Alrewas,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alrewas valuers.
Riley was the the leasehold owner of a high value apartment in Alrewas being marketed with a lease of a little over 61 years outstanding. Riley on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Riley to invoke his statutory right. Riley procured expert advice and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. M Ali moved into a one bedroom apartment in Alrewas in May 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable flats in Alrewas with 100 year plus lease were valued about £275,000. The average ground rent payable was £65 invoiced quarterly. The lease termination date was in 2094. Taking into account 68 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Mr and Mrs. R Rodríguez acquired a studio apartment in Alrewas in January 1995. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Alrewas with an extended lease were valued about £208,600. The average ground rent payable was £60 collected monthly. The lease ran out on 18 May 2083. Given that there were 57 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.