Unfortunately that a Alfriston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Alfriston property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Alfriston will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Alfriston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alfriston valuers.
Last Winter Alexander, came very near to the eighty-year mark with the lease on his studio flat in Alfriston. Having bought his home two decades ago, the length of the lease was of little significance. by good luck, he realised he needed to take steps soon on Extending the lease. Alexander extended the lease at the eleventh hour last May. Alexander and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £925.
Dr Gemma Laurent was assigned a lease of a newly refurbished apartment in Alfriston in July 2010. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable flats in Alfriston with an extended lease were worth £216,000. The average ground rent payable was £60 collected annually. The lease expiry date was in 2083. Having 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
Last Autumn we were contacted by Dr C Flores , who bought a garden apartment in Alfriston in May 1998. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical properties in Alfriston with an extended lease were worth £200,000. The average ground rent payable was £50 billed monthly. The lease finished in 2103. Having 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.