Alfriston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Alfriston residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Alfriston you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately 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 many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Alfriston,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 Alfriston valuers.
Last Winter Owen, came critically near to the 80-year mark with the lease on his garden apartment in Alfriston. Having bought his flat 19 years ago, the length of the lease was of minimal relevance. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Owen extended the lease just under the wire in April. Owen and the freeholder ultimately settled on a premium of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £1,100.
Mr and Mrs. J Gray moved into a purpose-built apartment in Alfriston in January 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar residencies in Alfriston with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 billed per annum. The lease concluded on 14 September 2089. Taking into account 64 years as a residual term we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of legals.
Mr and Mrs. C Davies owned a one bedroom flat in Alfriston in February 1998. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Identical premises in Alfriston with an extended lease were valued about £189,000. The average ground rent payable was £55 collected yearly. The lease ended in 2078. Having 53 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.