When it comes to long leasehold premises in Alston, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years left. Residents in Alston with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Alston with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Retaining our service gives you better control over the value of your Alston leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Zachary, started to get near to the eighty-year mark with the lease on his leasehold apartment in Alston. Having bought his flat two decades ago, the lease term was of minimal bearing. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Zachary arranged for a lease extension at the eleventh hour last May. Zachary and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If he not met the deadline, the figure would have increased by at least £1,000.
Last year we were phoned by Mr U Bennett , who bought a garden apartment in Alston in September 2002. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Alston with an extended lease were valued about £230,800. The average amount of ground rent was £60 collected yearly. The lease ended on 11 September 2083. Given that there were 60 years outstanding we calculated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including legals.
In 2011 we were e-mailed by Mr and Mrs. L Thomas who, having owned a studio flat in Alston in August 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable premises in Alston with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease ended in 2103. Having 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.