As the the remaining lease term of a Alresford domestic lease lessens so does its value and therefore the value of your property. If the residual term has, over 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Alresford will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Alresford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alresford valuers.
In 2014 Teddy, came dangerously near to the eighty-year threshold with the lease on his basement flat in Alresford. Having bought his flat 18 years ago, the lease term was of no concern. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Teddy was able to extend his lease just under the wire in March. Teddy and the landlord in the end agreed on a premium of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,100.
Mr and Mrs. S Davies moved into a first floor apartment in Alresford in April 2005. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Alresford with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 collected annually. The lease end date was in 2095. Having 69 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
Mr and Mrs. N Martinez was assigned a lease of a studio apartment in Alresford in April 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Alresford with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 collected per annum. The lease termination date was in 2084. Considering the 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.