On the balance of probabilities where you own a flat in Alfriston you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with handle Alfriston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Twenty four months ago Kian, started to get close to the 80-year mark with the lease on his basement flat in Alfriston. Having purchased his home two decades ago, the length of the lease was of little interest. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Kian extended the lease just ahead of time last September. Kian and the landlord who owned the flat above eventually agreed on sum of £5,500 . If the lease had slid below eighty years, the price would have gone up by a minimum £1,150.
Mr and Mrs. C Petit bought a recently refurbished flat in Alfriston in October 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Alfriston with a long lease were worth £198,800. The average amount of ground rent was £55 collected quarterly. The lease concluded in 2080. Having 55 years left we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus expenses.
Dr Leah Mason took over the lease of a basement flat in Alfriston in April 1999. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar residencies in Alfriston with a long lease were worth £295,000. The average ground rent payable was £50 billed annually. The lease lapsed on 12 February 2100. Having 75 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.