The value of Alvaston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is below than eighty years
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Alvaston can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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 procuring Alvaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her leasehold apartment in Alvaston, Sophia started the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in March 2008. The landlord’s charges were restricted to less than 550 pounds.
Dr Isabelle Garcia acquired a one bedroom flat in Alvaston in April 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Alvaston with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 billed annually. The lease finished on 6 March 2096. Given that there were 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2009 we were approached by Dr Isabella Sharif who, having owned a studio apartment in Alvaston in October 1999. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Alvaston with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 collected yearly. The lease concluded in 2085. Taking into account 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 not including costs.