Alton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Alton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Alton you must check if your lease has between 70 and 90 years remaining. There are good reasons why a Alton flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Alton with over one hundred 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Alton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alton valuers.
In recent months Owen, came critically near to the 80-year mark with the lease on his garden flat in Alton. Having purchased his property two decades ago, the lease term was of little importance. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Owen arranged for a lease extension at the eleventh hour last September. Owen and the landlord ultimately agreed on sum of £6,000 . If he failed to meet the deadline, the price would have increased by at least £1,000.
Last Christmas we were contacted by Mr and Mrs. T Bailey , who acquired a one bedroom apartment in Alton in June 2009. The question was if we could estimate the price would be to prolong the lease by an additional years. Similar properties in Alton with a long lease were in the region of £246,800. The average ground rent payable was £60 billed yearly. The lease concluded in 2076. Having 50 years unexpired we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus expenses.
In 2014 we were approached by Mr and Mrs. R Nguyen who, having bought a purpose-built apartment in Alton in May 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Alton with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected monthly. The lease ended on 10 March 2087. Given that there were 61 years unexpired we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including legals.