When it comes to long leasehold premises in Alexandra Park, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Alexandra Park with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 gives you better control over the value of your Alexandra Park 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Joseph, started to get close to the 80-year mark with the lease on his basement flat in Alexandra Park. Having purchased his property two decades ago, the unexpired term was of no interest. Thankfully, he recognised he needed to take steps soon on a lease extension. Joseph extended the lease just under the wire last March. Joseph and the landlord who owned the flat above in the end settled on an amount of £6,000 . If the lease had descended lower than 80 years, the premium would have become more exhorbitant by a minimum £1,000.
Ms Freya Dupont purchased a basement apartment in Alexandra Park in June 2009. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable flats in Alexandra Park with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease concluded in 2081. Considering the 55 years outstanding we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
An example of a Lease Extension case for a Alexandra Park flat is Flat B 10 Grove Avenue in October 2013. Following a vesting order Clerkenwell and Shoreditch County Court 3rd July 2013 The tribunal determines that the premium payable for the lease extension was £36,215.00 This case was in relation to 1 flat. The unexpired term was 65.21 years.