There is no doubt about it a leasehold property in Alvaston is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Alvaston will qualify for this right; however a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Alvaston with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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 conveyancer we work with provide it.
Sam was the the leasehold owner of a 2 bedroom flat in Alvaston on the market with a lease of fraction over 61 years unexpired. Sam informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Dr Jackson Jones bought a studio apartment in Alvaston in September 2009. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in Alvaston with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 12 February 2097. Given that there were 72 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Ms B Moreau acquired a newly refurbished apartment in Alvaston in May 2009. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Alvaston with a long lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed on 5 April 2086. Taking into account 61 years remaining we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of expenses.