Unfortunately that a Alford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Alford property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay half 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 additional value that a lease extension will add the property The majority of leasehold owners in Alford will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations 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 from beginning to end of the formalities.
Leasehold properties in Alford with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Alford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alford valuers.
In 2014 Jackson, started to get near to the 80-year mark with the lease on his purpose- built flat in Alford. In buying his home two decades ago, the unexpired term was of no interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Jackson extended the lease at the eleventh hour last July. Jackson and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had dipped lower than eighty years, the sum would have escalated by at least £875.
In 2012 we were phoned by Mr and Mrs. J Cox who, having purchased a one bedroom apartment in Alford in January 1995. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical homes in Alford with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected monthly. The lease expiry date was on 9 August 2088. Given that there were 62 years remaining we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.
In 2012 we were e-mailed by Mr L Roux who, having purchased a one bedroom apartment in Alford in September 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Alford with a long lease were worth £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2099. Having 73 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.