Main reasons to start your Alton lease extension

Why you should commence your Alton lease extension today:

A Alton lease depreciates with the years remaining on the lease.

Alton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Alton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Alton you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions will not grant a mortgage with a short lease

Mortgage companies are really clamping down as regards to properties in Alton with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of potential buyers.

What makes us experts in Alton lease extensions?

Regardless of whether you are a tenant or a landlord in Alton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alton valuers.

Alton Lease Extension Case Summaries:

Jake, Alton, Hampshire,

Jake owned a 2 bedroom flat in Alton on the market with a lease of a little over fifty eight years outstanding. Jake informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.

Alton case:

Last May we were contacted by Ms M González , who acquired a garden apartment in Alton in August 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Alton with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2083. Given that there were 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.

Alton case:

In 2009 we were approached by Dr Isabelle Vincent who, having moved into a garden apartment in Alton in April 1998. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable flats in Alton with a long lease were valued about £250,000. The average amount of ground rent was £50 billed quarterly. The lease finished in 2094. Given that there were 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of expenses.