Alfriston leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Alfriston will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Alfriston leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Aaron, started to get close to the eighty-year threshold with the lease on his studio flat in Alfriston. Having bought his property two decades ago, the lease term was of no interest. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Aaron arranged for a lease extension at the eleventh hour last July. Aaron and the landlord eventually settled on a premium of £6,000 . If the lease had slipped to less than eighty years, the sum would have gone up by a minimum £1,050.
Last Winter we were approach by Mr Ryan Watson , who acquired a basement apartment in Alfriston in April 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Alfriston with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 collected yearly. The lease ran out on 11 November 2085. Having 59 years outstanding we estimated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of legals.
Mr Ibrahim Rodríguez owned a garden apartment in Alfriston in February 2007. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Alfriston with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ran out on 11 January 2105. Taking into account 79 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.