Unfortunately that a Alvaston residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Alvaston property prices.Where your lease has approximately 90 years left, you should start considering 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 dips below eighty years - otherwise a higher premium will be payable. Most flat owners in Alvaston will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Alvaston with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 Alvaston can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Alvaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Adam, came dangerously close to the eighty-year mark with the lease on his leasehold flat in Alvaston. In buying his property two decades ago, the length of the lease was of no significance. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Adam arranged for a lease extension just under the wire last June. Adam and the landlord eventually settled on an amount of £6,000 . If he had missed the deadline, the amount would have become more costly by a minimum £1,100.
Last Summer we were approach by Mr and Mrs. K Williams , who owned a one bedroom flat in Alvaston in July 2008. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative premises in Alvaston with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 billed yearly. The lease ran out in 2077. Given that there were 51 years as a residual term we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.
Last Christmas we were called by Ms Courtney King , who took over the lease of a one bedroom apartment in Alvaston in April 1997. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar premises in Alvaston with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 billed annually. The lease concluded in 2097. Considering the 71 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.