Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Alston. Clearly, the term of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Alston have the right to extend the lease for an additional 90 years under legislation. You should give due consideration before putting off your Alston lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Alston with over 100 years remaining 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Alston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alston valuers.
Two years ago Stanley, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Alston. Having purchased his home twenty years previously, the unexpired term was of little concern. Thankfully, he noticed he needed to take action soon on a lease extension. Stanley arranged for a lease extension just in the nick of time last July. Stanley and the landlord eventually settled on a premium of £5,000 . If he not met the deadline, the figure would have become more costly by a minimum £900.
Dr A Collins was assigned a lease of a first floor flat in Alston in February 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Alston with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced quarterly. The lease termination date was in 2078. Having 54 years unexpired we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.
Last Winter we were phoned by Mrs C Martínez , who owned a purpose-built flat in Alston in August 2005. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Alston with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 collected annually. The lease ran out in 2098. Taking into account 74 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.