Alton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Alton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Alton you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Alton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| Santander | |
| Skipton Building Society | |
| Virgin |
The lawyers that we work with handle Alton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Ben, started to get close to the eighty-year mark with the lease on his studio apartment in Alton. Having bought his property two decades ago, the unexpired term was of minimal interest. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Ben arranged for a lease extension just under the wire in August. Ben and the landlord in the end agreed on sum of £5,500 . If he not met the deadline, the sum would have increased by a minimum £925.
Ms Rachael Cox was assigned a lease of a recently refurbished apartment in Alton in August 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Alton with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed on 11 July 2102. Having 76 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Mrs Ella Bennett bought a one bedroom flat in Alton in March 2001. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical flats in Alton with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease termination date was in 2082. Taking into account 56 years outstanding we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus professional charges.