The value of Alfriston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than 80 years
Leasehold premises in Alfriston with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Alfriston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Nathaniel was the the leasehold proprietor of a high value apartment in Alfriston on the market with a lease of fraction over 61 years left. Nathaniel on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen 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 twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and secured satisfactory deal informally and sell the flat.
In 2013 we were called by Dr Rory Peterson who, having moved into a studio apartment in Alfriston in September 2011. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical homes in Alfriston with a long lease were worth £210,000. The average ground rent payable was £50 collected annually. The lease expiry date was in 2106. Considering the 80 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. S Norbert who, having bought a studio apartment in Alfriston in March 2002. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Alfriston with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated in 2095. Taking into account 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.