There is no doubt about it a leasehold property in Alston is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Alston will qualify for this right; that being said a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Alston can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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.
Milo was the the leasehold owner of a conversion apartment in Alston being marketed with a lease of a little over 59 years remaining. Milo informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and secured satisfactory deal informally and sell the property.
In 2013 we were called by Dr E Reed who, having owned a first floor apartment in Alston in June 2006. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative premises in Alston with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out in 2093. Taking into account 67 years left we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including costs.
Mr and Mrs. M Patel purchased a basement flat in Alston in July 1995. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Alston with an extended lease were in the region of £206,200. The average ground rent payable was £55 collected yearly. The lease end date was on 4 January 2082. Considering the 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.