Main reasons to start your Alford lease extension

Main reasons to start your Alford lease extension today:

Increase your lease and increase your Alford property value

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Alford can extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Alford lease extension. Postponing that expense today simply escalates the price you will ultimately have to pay to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold premises in Alford with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions will not finance a property on a short lease

Banks and building societies are really clamping down as regards to properties in Alford with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus narrowing your market.

What makes us experts in Alford lease extensions?

Irrespective of whether you are a tenant or a landlord in Alford,the lease extension experts that we work with will always be willing 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.

Alford Lease Extension Example Cases:

Leo, Alford, Lincolnshire

In recent months Leo, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Alford. Having bought his flat two decades ago, the unexpired term was of no importance. As luck would have it, it dawned on him that he would soon be paying way over the odds for a lease extension. Leo arranged for a lease extension just under the wire last January. Leo and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had slipped lower than 80 years, the price would have gone up by at least £1,150.

Alford case:

In 2013 we were e-mailed by Mr Benjamin Cooper who, having completed a ground floor apartment in Alford in February 2001. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Alford with an extended lease were in the region of £186,000. The average ground rent payable was £65 invoiced annually. The lease elapsed on 6 October 2084. Given that there were 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of expenses.

Alford case:

In 2011 we were e-mailed by Ms Mia Johnson who, having moved into a one bedroom flat in Alford in August 2002. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Alford with a long lease were valued around £250,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed in 2095. Taking into account 69 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.