Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chapel Allerton. Clearly, the length of lease remaining reduces over time. This is often overlooked and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Chapel Allerton have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. You should give due consideration before putting off your Chapel Allerton lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Chapel Allerton with more than 100 years unexpired on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service will provide you enhanced control over the value of your Chapel Allerton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold proprietor of a high value apartment in Chapel Allerton on the market with a lease of a little over 61 years remaining. Ryan informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Dr T Mitchell , who was assigned a lease of a one bedroom flat in Chapel Allerton in August 2008. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar homes in Chapel Allerton with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease end date was in 2104. Taking into account 79 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Last year we were e-mailed by Mr and Mrs. R González , who was assigned a lease of a ground floor flat in Chapel Allerton in July 2009. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Chapel Allerton with a long lease were in the region of £275,000. The average ground rent payable was £65 collected annually. The lease expired in 2093. Given that there were 68 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.