Alfriston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Alfriston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Alfriston you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Alfriston can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Alfriston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hunter was the the leasehold owner of a conversion flat in Alfriston being marketed with a lease of just over sixty years remaining. Hunter informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Ms F Torres took over the lease of a first floor apartment in Alfriston in May 1996. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable premises in Alfriston with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed annually. The lease came to a finish in 2103. Given that there were 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last year we were phoned by Dr Madeleine Edwards , who bought a garden flat in Alfriston in April 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical properties in Alfriston with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out on 16 February 2092. Given that there were 66 years outstanding we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of costs.