As the the remaining lease term of a Alfriston domestic lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Alfriston will qualify for this right; that being said a conveyancer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Alfriston with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Alfriston leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Matthew, came dangerously near to the 80-year mark with the lease on his two bedroom flat in Alfriston. Having purchased his flat 19 years ago, the lease term was of minimal relevance. As luck would have it, he recognised he needed to take action soon on a lease extension. Matthew was able to extend his lease just in the nick of time in April. Matthew and the freeholder via the management company ultimately settled on an amount of £5,500 . If the lease had gone to less than eighty years, the price would have gone up by a minimum £900.
In 2010 we were e-mailed by Dr Sam Vincent who, having owned a first floor flat in Alfriston in November 2009. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative premises in Alfriston with an extended lease were valued about £198,800. The average ground rent payable was £55 invoiced monthly. The lease concluded in 2081. Taking into account 55 years remaining we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus expenses.
Mr E Morel was assigned a lease of a studio flat in Alfriston in November 2002. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative properties in Alfriston with an extended lease were valued around £300,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded on 14 September 2101. Having 75 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.