When it comes to domestic leasehold premises in Alston, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Residents in Alston with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has under eighty years remaining, under the current Act the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
Lender | Requirement |
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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. |
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. |
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. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Alston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alston valuers.
Subsequent to unsuccessful negotiations with the freeholder of her two bedroom flat in Alston, Jennifer commenced the lease extension process as the 80 year threshold was swiftly approaching. The lease extension was concluded in April 2008. The landlord’s charges were negotiated to below 550 pounds.
Last July we were phoned by Mr and Mrs. C Smith , who took over the lease of a one bedroom apartment in Alston in October 2003. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable flats in Alston with a long lease were valued about £184,000. The average amount of ground rent was £55 collected every twelve months. The lease expiry date was on 17 July 2077. Having 53 years unexpired we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.
In 2014 we were contacted by Dr Ben Walker who, having owned a one bedroom apartment in Alston in October 1999. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical premises in Alston with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease finished on 5 October 2097. Taking into account 73 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.