The closer a residential lease in Alston gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Alston will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Alston with in excess of one hundred 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you better control over the value of your Alston leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her one bedroom apartment in Alston, Jordan started the lease extension process as the eighty year mark was rapidly nearing. The transaction completed in June 2011. The landlord’s costs were kept to an absolute minimum.
In 2011 we were contacted by Dr C Morel who, having purchased a one bedroom apartment in Alston in January 2008. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Alston with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed on 28 November 2081. Having 55 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus expenses.
Mr C Roberts purchased a recently refurbished flat in Alston in June 1997. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Alston with a long lease were worth £295,000. The mid-range ground rent payable was £50 billed every twelve months. The lease termination date was on 26 October 2101. Given that there were 75 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.