There is no doubt about it a leasehold property in Alfriston is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Alfriston will qualify for this right; that being said a conveyancer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Alfriston with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
The lawyers 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 conveyancer we work with provide it.
In 2014 Alfie, started to get near to the 80-year threshold with the lease on his studio flat in Alfriston. Having purchased his property twenty years previously, the length of the lease was of minimal significance. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Alfie arranged for a lease extension just under the wire in September. Alfie and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had dropped lower than eighty years, the figure would have increased by at least £1,025.
Mr and Mrs. E Ward took over the lease of a first floor flat in Alfriston in February 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Alfriston with an extended lease were valued around £171,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out on 6 August 2076. Having 50 years left we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of fees.
Mr and Mrs. H Harris completed a studio apartment in Alfriston in April 2008. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Alfriston with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease concluded on 19 March 2096. Having 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.