Alston leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Flat owners in Alston will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Alston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
14 months ago Nathaniel, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Alston. In buying his home twenty years previously, the unexpired term was of minimal concern. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Nathaniel arranged for a lease extension just under the wire last June. Nathaniel and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If the lease had dipped below 80 years, the amount would have increased by at least £1,075.
Mr and Mrs. K Mitchell owned a garden apartment in Alston in October 1997. We are asked if we could estimate the price could be for a ninety year lease extension. Similar homes in Alston with an extended lease were valued about £208,600. The average ground rent payable was £60 collected per annum. The lease ran out on 10 August 2083. Considering the 57 years remaining we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
In 2009 we were contacted by Mr and Mrs. Y Smith who, having acquired a one bedroom apartment in Alston in October 2010. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in Alston with a long lease were worth £200,000. The average ground rent payable was £50 collected monthly. The lease concluded on 20 November 2103. Taking into account 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.