Alford leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Alford will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| TSB |
Lease extensions in Alford can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Alford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan owned a high value apartment in Alford on the market with a lease of a few days over 59 years unexpired. Dylan informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last year we were e-mailed by Dr George David , who took over the lease of a basement flat in Alford in July 2002. The question was if we could approximate the price could be for a 90 year lease extension. Similar flats in Alford with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 invoiced monthly. The lease ended on 5 October 2100. Considering the 74 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Last year we were e-mailed by Dr P Mason , who took over the lease of a one bedroom flat in Alford in May 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Alford with an extended lease were in the region of £166,400. The average amount of ground rent was £60 invoiced every twelve months. The lease finished in 2080. Taking into account 54 years left we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus professional charges.