It’s an underpublicised truth that a Allenton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Allenton property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Allenton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Allenton with in excess of 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Allenton can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
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 Allenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Henry was the the leasehold proprietor of a studio flat in Allenton being sold with a lease of just over 72 years unexpired. Henry on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were contacted by Mr Joseph Ali who, having completed a one bedroom apartment in Allenton in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Allenton with a long lease were in the region of £206,200. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish on 8 May 2081. Having 56 years remaining we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus fees.
Last Christmas we were called by Mr Ryan James , who completed a ground floor apartment in Allenton in August 2001. The question was if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Allenton with an extended lease were in the region of £300,000. The average amount of ground rent was £50 collected annually. The lease terminated on 4 June 2101. Considering the 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.