Alston residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Alston with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Alston can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Alston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Oscar, started to get close to the eighty-year mark with the lease on his leasehold apartment in Alston. Having purchased his property twenty years ago, the lease term was of no bearing. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Oscar was able to extend his lease at the eleventh hour in March. Oscar and the landlord who owned the flat above eventually settled on an amount of £5,000 . If he not met the deadline, the figure would have gone up by at least £850.
Dr Liam López completed a garden flat in Alston in June 2007. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Alston with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed in 2097. Taking into account 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Mrs Natalie Davis acquired a first floor flat in Alston in August 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Alston with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 2 October 2086. Given that there were 60 years left we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including expenses.