The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Alvaston may extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Alvaston lease extension. Postponing the costs now simply escalates the price you will ultimately be required to pay to extend the lease.
Leasehold residencies in Alvaston with in excess of 100 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
Using our service will provide you increased control over the value of your Alvaston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her two bedroom apartment in Alvaston, Isobel initiated the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was finalised in August 2005. The landlord’s fees were restricted to slightly above 450 GBP.
Ms Victoria Bertrand owned a recently refurbished flat in Alvaston in August 2002. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical flats in Alvaston with an extended lease were worth £257,800. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish in 2090. Considering the 65 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.
In 2011 we were contacted by Dr P Michel who, having owned a one bedroom flat in Alvaston in July 2005. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Alvaston with 100 year plus lease were valued around £191,400. The average ground rent payable was £55 collected quarterly. The lease finished in 2079. Having 54 years unexpired we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of fees.