Alnmouth leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Alnmouth will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Virgin |
The conveyancing solicitors that we work with procure Alnmouth 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.
Michael owned a studio flat in Alnmouth on the market with a lease of just over 61 years unexpired. Michael informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Spring we were approach by Mr and Mrs. Y Hill , who acquired a ground floor apartment in Alnmouth in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Alnmouth with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed on 10 October 2104. Having 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Mr F Morris moved into a purpose-built apartment in Alnmouth in August 2012. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Similar premises in Alnmouth with an extended lease were valued around £191,000. The average amount of ground rent was £65 billed quarterly. The lease terminated in 2084. Having 58 years as a residual term we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including expenses.