Alton leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher amount will be due. Leasehold owners in Alton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Alton with more than one hundred years unexpired on the lease are sometimes 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 buying the freehold unless savings on ground rent and service charges warrant 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Alton can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Alton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her first floor apartment in Alton, Yasmin commenced the lease extension process as the 80 year mark was fast nearing. The lease extension completed in August 2007. The freeholder’s fees were kept to an absolute minimum.
Mr M Walker bought a first floor flat in Alton in January 1996. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar flats in Alton with a long lease were in the region of £215,600. The average ground rent payable was £45 billed per annum. The lease ran out on 12 January 2088. Given that there were 62 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.
Last Spring we were called by Dr Reuben Peterson , who was assigned a lease of a newly refurbished apartment in Alton in November 2010. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical properties in Alton with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded in 2099. Given that there were 73 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.