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Why you should start your Alston lease extension

Main reasons to commence your Alston lease extension today:

A Alston leasehold property depreciates with the years remaining on the lease.

Alston leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Alston will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.

Alston property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not finance a property with a short lease

Banks and Building Societies are less likely to issue a loan offer on a residential flat in Alston with a short lease. Many lenders simply refuse a mortgage on leases with less than 75 years remaining.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Halifax Minimum 70 years from the date of the mortgage.
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.

Why use us for your lease extension in Alston?

Irrespective of whether you are a tenant or a freeholder in Alston,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alston valuers.

Alston Lease Extension Case Summaries:

Logan, Alston, Cumbria,

Logan was the the leasehold proprietor of a 2 bedroom apartment in Alston on the market with a lease of a few days over 59 years left. Logan informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Logan to invoke his statutory right. Logan obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.

Alston case:

Dr Seth Bonnet bought a basement apartment in Alston in March 2002. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Identical flats in Alston with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease finished on 9 February 2096. Having 72 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.

Alston case:

In 2009 we were phoned by Mr and Mrs. W Davies who, having bought a first floor flat in Alston in April 2001. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar residencies in Alston with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease elapsed on 15 September 2085. Taking into account 61 years as a residual term we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including costs.