Main reasons to commence your Alston lease extension

Why you should commence your Alston lease extension today:

Increase your lease and increase your Alston property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Alston. Clearly, the length of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Alston have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful attention before putting off your Alston lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension

An extended lease is almost the same value as a freehold

Leasehold properties in Alston with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not grant a mortgage with a short lease

Most mortgage lenders will not lend on a lease with under seventy years remaining - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Alston property being difficult to sell or to obtain finance on.

Why use us for your lease extension in Alston?

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 conveyancer we work with provide it.

Alston Lease Extension Case Studies:

Jake, Alston, Cumbria,

Jake was the the leasehold owner of a studio flat in Alston on the market with a lease of just over fifty eight years unexpired. Jake on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.

Alston case:

Mr and Mrs. M Clark moved into a studio apartment in Alston in January 2007. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar properties in Alston with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated on 26 September 2102. Given that there were 76 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.

Alston case:

Mr and Mrs. D Smith completed a one bedroom flat in Alston in April 2012. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable flats in Alston with 100 year plus lease were valued around £257,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed in 2091. Having 65 years left we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.