The re-sale value of a leasehold property in Alnmouth is impacted by how long the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year cut off point. Current legislation entitles Alnmouth qualifying lessees to an additional term of ninety years in addition to the existing term, at a notional rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Alnmouth with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Alnmouth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alnmouth valuers.
Ethan was the the leasehold owner of a high value apartment in Alnmouth being sold with a lease of just over fifty eight years outstanding. Ethan informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were contacted by Mr Stanley Scott who, having was assigned a lease of a studio apartment in Alnmouth in August 2011. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Alnmouth with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended in 2092. Considering the 66 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2013 we were approached by Mr and Mrs. D Taylor who, having took over the lease of a garden apartment in Alnmouth in June 1996. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar residencies in Alnmouth with an extended lease were worth £275,000. The average amount of ground rent was £55 collected every twelve months. The lease finished in 2103. Having 77 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.