The market value of a leasehold property in Alston is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded ahead of the 80 year mark. Current legislation enables Alston qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Alston with over 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Following protracted negotiations with the landlord of her ground floor flat in Alston, Hollie commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction completed in June 2011. The landlord’s fees were negotiated to less than 500 GBP.
Last month we were approach by Mr W Carter , who purchased a one bedroom apartment in Alston in April 2009. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Alston with an extended lease were worth £243,000. The average amount of ground rent was £65 invoiced yearly. The lease concluded on 23 November 2089. Considering the 63 years remaining we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
In 2012 we were contacted by Ms E Scott who, having moved into a one bedroom apartment in Alston in September 2007. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Similar residencies in Alston with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2078. Considering the 52 years left we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.