It’s a harsh certainty that a Alston residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Alston property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay 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 additional value that a lease extension will add the property Most leasehold owners in Alston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Alston with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Alston can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Alston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Omar, came precariously close to the eighty-year threshold with the lease on his garden apartment in Alston. In buying his home two decades ago, the lease term was of minimal significance. Thankfully, he noticed he would soon be paying way over the odds for Extending the lease. Omar arranged for a lease extension at the eleventh hour last August. Omar and the freeholder via the management company eventually agreed on a premium of £5,500 . If he not met the deadline, the price would have gone up by a minimum £1,000.
In 2013 we were called by Dr N Sánchez who, having purchased a first floor flat in Alston in May 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar flats in Alston with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease ended in 2104. Given that there were 78 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last Spring we were e-mailed by Dr Natalie Patel , who acquired a first floor apartment in Alston in November 2004. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Alston with a long lease were in the region of £267,600. The average ground rent payable was £65 collected annually. The lease concluded in 2093. Considering the 67 years unexpired we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including professional charges.