The closer a residential lease in Alfriston nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 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 without delay. Many flat owners in Alfriston will qualify for this right; however a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Alfriston leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alfie was the the leasehold owner of a high value flat in Alfriston on the market with a lease of fraction over fifty eight years remaining. Alfie on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were e-mailed by Ms C Laurent who, having acquired a ground floor apartment in Alfriston in October 2012. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable properties in Alfriston with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed in 2093. Taking into account 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
In 2013 we were approached by Ms A González who, having took over the lease of a recently refurbished apartment in Alfriston in April 2004. The question was if we could approximate the premium could be to prolong the lease by ninety years. Comparative premises in Alfriston with a long lease were valued around £208,600. The average amount of ground rent was £60 billed every twelve months. The lease expiry date was on 22 July 2082. Taking into account 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.