Unfortunately that a Alperton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Alperton property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Alperton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Alperton with more than 100 years remaining on the lease are often referred to as ‘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 merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you enhanced control over the value of your Alperton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Hunter, started to get close to the eighty-year mark with the lease on his first floor flat in Alperton. Having bought his home 18 years ago, the lease term was of little bearing. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Hunter arranged for a lease extension just in the nick of time in August. Hunter and the freeholder eventually settled on an amount of £5,000 . If the lease had slipped to less than eighty years, the price would have become more costly by at least £925.
Mr and Mrs. V Alexander moved into a newly refurbished flat in Alperton in February 2012. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative flats in Alperton with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 collected annually. The lease finished on 25 September 2080. Having 54 years remaining we calculated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus fees.
An example of a Lease Extension decision for a Alperton residence is 99 Connell Crescent in May 2013. the Tribunal held that the relevant sum for the purposes of the lease extension should be £72,566 to be paid by the leaseholder This case affected 1 flat. The unexpired term was 28.42 years.