The market value of Alston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than eighty years
Leasehold properties in Alston with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Alston can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Half a year ago Theo, started to get close to the 80-year mark with the lease on his ground floor flat in Alston. In buying his home two decades ago, the lease term was of little importance. Thankfully, he realised he needed to take action soon on Extending the lease. Theo arranged for a lease extension at the eleventh hour in April. Theo and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had gone to less than 80 years, the amount would have become more costly by a minimum £1,150.
Mr K Moore owned a recently refurbished apartment in Alston in February 2007. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative homes in Alston with an extended lease were in the region of £189,000. The average ground rent payable was £55 billed quarterly. The lease finished in 2079. Considering the 53 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.
Mr Muhammad Peterson moved into a ground floor apartment in Alston in February 2004. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical flats in Alston with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish in 2099. Taking into account 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.