Main reasons to start your Alston lease extension

Main reasons to commence your Alston lease extension today:

A Alston lease depreciates with the years remaining on the lease.

Alston residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.

Alston property with a lease extension is almost the same value as a freehold

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

Mortgage lenders may not finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic once you come to dispose of or remortgage your property as it will be practically unmortgageable. You may not have an imminent desire to sell but when you do your purchaser must wait 2 years before they can commence the legal procedures for an extension to the lease.

Get in touch with one of our Alston lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with undertake 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:

Jamie, Alston, Cumbria,

Jamie owned a conversion flat in Alston on the market with a lease of a few days over 61 years left. Jamie on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured satisfactory resolution informally and sell the property.

Alston case:

Mr H Adams acquired a studio apartment in Alston in February 2004. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical properties in Alston with a long lease were worth £225,800. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2086. Given that there were 60 years outstanding we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including expenses.

Alston case:

In 2009 we were contacted by Mrs Amy Gómez who, having purchased a one bedroom apartment in Alston in March 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Alston with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2106. Having 80 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.