There is no doubt about it a leasehold property in Alresford is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Alresford will qualify for this right; however a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Alresford with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Alresford 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 conveyancer we work with provide it.
Lewis was the the leasehold proprietor of a 2 bedroom apartment in Alresford being sold with a lease of fraction over fifty eight years left. Lewis on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Lewis to exercise his statutory right. Lewis procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Last year we were phoned by Dr V Norbert , who took over the lease of a newly refurbished flat in Alresford in March 2002. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Alresford with an extended lease were worth £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed in 2081. Given that there were 55 years left we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including fees.
In 2009 we were phoned by Mr and Mrs. V Rogers who, having owned a one bedroom flat in Alresford in June 2010. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative premises in Alresford with an extended lease were worth £295,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 17 May 2101. Having 75 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.