Alton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Alton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Alton you should investigate if your lease has between 70 and ninety years left. There are good reasons why a Alton leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold properties in Alton with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in 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 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Alton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Samuel, started to get near to the eighty-year mark with the lease on his studio flat in Alton. Having purchased his home twenty years ago, the unexpired term was of little importance. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Samuel extended the lease just under the wire in May. Samuel and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had slid below eighty years, the amount would have escalated by a minimum £875.
Ms Aimee James completed a basement flat in Alton in May 1998. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Alton with an extended lease were valued about £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended in 2097. Considering the 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2011 we were e-mailed by Mr Alexander Moore who, having took over the lease of a basement apartment in Alton in November 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Alton with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed annually. The lease lapsed on 9 January 2076. Having 51 years unexpired we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of costs.