Alnmouth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Alnmouth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Alnmouth you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Alnmouth leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Alnmouth leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the landlord of her ground floor flat in Alnmouth, Kelsey started the lease extension process as the 80 year deadline was fast approaching. The transaction completed in January 2007. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr Dylan Bennett who, having acquired a one bedroom flat in Alnmouth in February 2008. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable flats in Alnmouth with 100 year plus lease were worth £290,000. The average ground rent payable was £60 collected quarterly. The lease expired on 19 July 2105. Given that there were 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
Last Spring we were called by Mr and Mrs. K Martínez , who purchased a studio apartment in Alnmouth in May 2007. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable premises in Alnmouth with an extended lease were in the region of £200,800. The average ground rent payable was £65 invoiced annually. The lease terminated in 2085. Having 60 years remaining we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of fees.