Alvaston leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Alvaston will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Alvaston with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Alvaston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Adam, came precariously near to the 80-year mark with the lease on his purpose- built flat in Alvaston. Having bought his property twenty years ago, the unexpired term was of minimal relevance. Luckily, he recognised he needed to take action soon on a lease extension. Adam arranged for a lease extension just ahead of time last May. Adam and the freeholder via the management company in the end agreed on the final figure of £6,000 . If he not met the deadline, the premium would have gone up by at least £1,100.
In 2010 we were approached by Ms Chelsea Martinez who, having bought a first floor flat in Alvaston in November 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative properties in Alvaston with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2103. Having 77 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
Mr and Mrs. T Torres completed a first floor flat in Alvaston in September 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Alvaston with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 billed annually. The lease ended in 2092. Having 66 years remaining we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus professional charges.