Unfortunately that a Alston residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Alston property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Alston will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Alston with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Santander |
Using our service gives you increased control over the value of your Alston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Tyler, started to get near to the eighty-year mark with the lease on his one bedroom flat in Alston. Having bought his flat two decades ago, the length of the lease was of minimal interest. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Tyler was able to extend his lease just under the wire last July. Tyler and the freeholder eventually agreed on sum of £6,000 . If the lease had dipped below 80 years, the figure would have escalated by at least £850.
In 2014 we were contacted by Mr and Mrs. W Jackson who, having completed a recently refurbished apartment in Alston in October 2008. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Alston with 100 year plus lease were valued about £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed on 26 June 2078. Considering the 52 years unexpired we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
Last Winter we were contacted by Mr and Mrs. Y Hill , who acquired a basement flat in Alston in June 1998. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical homes in Alston with a long lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2098. Having 72 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.