There is no doubt about it a leasehold flat or house in Alnwick is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Alnwick will qualify for this right; that being said a conveyancing solicitor will be able to confirm whether you qualify 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 Alnwick with in excess of one hundred years left 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 buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Alnwick 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 conveyancing solicitor we work with provide it.
In the wake of eight months of protracted negotiations with the freeholder of her ground floor flat in Alnwick, Abigail initiated the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was concluded in July 2009. The landlord’s charges were negotiated to less than six hundred pounds.
Ms U Laurent bought a studio apartment in Alnwick in September 2012. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Alnwick with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed monthly. The lease end date was in 2077. Considering the 52 years remaining we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.
Last Spring we were called by Dr V Bernard , who owned a ground floor apartment in Alnwick in July 1996. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in Alnwick with a long lease were valued about £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease termination date was on 14 July 2098. Having 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.