Alston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Alston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Alston you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Alston 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.
Twenty four months ago Arthur, came very near to the eighty-year mark with the lease on his one bedroom flat in Alston. In buying his home 18 years ago, the unexpired term was of no bearing. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Arthur was able to extend his lease at the eleventh hour in January. Arthur and the freeholder ultimately settled on sum of £5,500 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,025.
Mr and Mrs. U Davis moved into a one bedroom flat in Alston in January 2005. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Alston with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease finished in 2096. Having 70 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
Last Summer we were phoned by Dr O Evans , who moved into a basement flat in Alston in November 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Alston with a long lease were worth £223,400. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 4 August 2085. Taking into account 59 years outstanding we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of legals.