When it comes to long leasehold property in Alston, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Leasehold owners in Alston with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has less than 80 years outstanding, under the current Act the landlord can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Alston with more than 100 years remaining on the lease are often 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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her purpose-built apartment in Alston, Amy initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The lease extension was concluded in March 2013. The landlord’s costs were kept to an absolute minimum.
Dr E Davis acquired a one bedroom flat in Alston in August 2010. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in Alston with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 collected annually. The lease ended on 1 September 2086. Given that there were 61 years unexpired we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including fees.
In 2011 we were phoned by Mr and Mrs. J Roux who, having acquired a one bedroom flat in Alston in January 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable premises in Alston with an extended lease were in the region of £166,800. The average ground rent payable was £50 billed yearly. The lease terminated in 2075. Given that there were 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.