Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Alfriston. Clearly, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Alfriston have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Please give due deliberation before delaying your Alfriston lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors 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 lawyer we work with provide it.
Max was the the leasehold owner of a 2 bedroom flat in Alfriston being marketed with a lease of a little over 59 years unexpired. Max informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Winter we were called by Mr and Mrs. O Brown , who acquired a one bedroom flat in Alfriston in June 1996. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Alfriston with an extended lease were valued around £210,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish in 2104. Having 80 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.
Last month we were called by Ms J Robinson , who took over the lease of a ground floor flat in Alfriston in September 1999. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Similar flats in Alfriston with an extended lease were worth £275,000. The average amount of ground rent was £45 billed per annum. The lease expired on 27 January 2093. Having 69 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.