As the the remaining lease term of a Alfriston residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years left 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 main logic behind why you should extend the lease without delay. The majority of flat owners in Alfriston will qualify for this right; however a conveyancer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society |
The lawyers that we work with procure 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.
Alexander owned a 2 bedroom apartment in Alfriston on the market with a lease of fraction over 61 years remaining. Alexander informally approached his freeholder a well known London-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 to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2009 we were phoned by Mr and Mrs. K Garcia who, having completed a first floor apartment in Alfriston in February 2003. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Alfriston with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2104. Given that there were 78 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Dr Alisha Moreau moved into a purpose-built apartment in Alfriston in January 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Similar premises in Alfriston with an extended lease were worth £267,600. The average ground rent payable was £65 collected quarterly. The lease concluded in 2093. Given that there were 67 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.