Alston leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Alston will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Alston with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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. |
Using our service will provide you increased control over the value of your Alston leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted negotiations with the landlord of her ground floor flat in Alston, Abigail commenced the lease extension process as the eighty year deadline was swiftly nearing. The legal work was finalised in February 2012. The landlord’s costs were kept to an absolute minimum.
Dr Ben Ali moved into a purpose-built apartment in Alston in April 2009. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Alston with 100 year plus lease were worth £240,600. The average ground rent payable was £60 collected per annum. The lease terminated on 12 September 2087. Having 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.
Mrs A Hernández took over the lease of a one bedroom flat in Alston in July 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar flats in Alston with 100 year plus lease were worth £174,200. The average ground rent payable was £55 invoiced per annum. The lease concluded in 2076. Considering the 51 years outstanding we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.