The closer a residential lease in Alford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Alford will qualify for this right; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service will provide you better control over the value of your Alford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hugo owned a 2 bedroom flat in Alford on the market with a lease of just over fifty eight years left. Hugo informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Ms Grace Rivera acquired a one bedroom flat in Alford in March 2006. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar flats in Alford with an extended lease were worth £264,000. The average ground rent payable was £60 collected monthly. The lease ended in 2078. Having 53 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of professional charges.
Mr and Mrs. T Simon took over the lease of a ground floor apartment in Alford in November 2011. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable homes in Alford with a long lease were worth £225,400. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2089. Given that there were 64 years as a residual term we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.