Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Alrewas. Clearly, the period of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Alrewas have the right to extend the lease for a further 90 years under legislation. You should give careful deliberation before putting off your Alrewas lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Alrewas leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her garden apartment in Alrewas, Rosie commenced the lease extension process as the 80 year mark was swiftly advancing. The legal work was finalised in April 2012. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. E Taylor , who took over the lease of a purpose-built flat in Alrewas in March 2009. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar properties in Alrewas with a long lease were valued around £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease ended on 13 January 2076. Considering the 51 years left we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.
In 2012 we were contacted by Dr F Ricardo who, having moved into a one bedroom apartment in Alrewas in April 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Identical premises in Alrewas with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish on 6 April 2096. Taking into account 71 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.