Alperton residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Alperton with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Alperton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of eight months of protracted discussions with the freeholder of her two bedroom apartment in Alperton, Naomi initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was concluded in May 2009. The landlord’s charges were kept to an absolute minimum.
In 2012 we were approached by Mr and Mrs. Y Wilson who, having completed a basement apartment in Alperton in July 1997. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar homes in Alperton with 100 year plus lease were valued about £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease ended on 11 March 2077. Taking into account 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus fees.
An example of a Lease Extension matter before the tribunal for a Alperton residence is 99 Connell Crescent in May 2013. the Tribunal held that the relevant sum for the purposes of the lease extension should be £72,566 to be paid by the leaseholder This case affected 1 flat. The number of years remaining on the existing lease(s) was 28.42 years.