Alfriston Lease Extension - Free Consultation

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Main reasons to commence your Alfriston lease extension


Top reasons for lease extension now:

A Alfriston leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Alfriston. Clearly, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Alfriston have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Alfriston lease extension. Holding off that expense now only increases the price you will ultimately incur to extend your lease

Alfriston property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lending institutions will not issue a mortgage on a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are regarded as unacceptable security.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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.
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.
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.

Why use us for your lease extension in Alfriston?

Regardless of whether you are a tenant or a freeholder in Alfriston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alfriston valuers.

Alfriston Lease Extension Example Cases:

George, Alfriston, East Sussex,

George owned a conversion apartment in Alfriston being sold with a lease of just over 59 years unexpired. George informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.

Alfriston case:

Mr Leon Michel took over the lease of a basement apartment in Alfriston in May 2000. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Alfriston with a long lease were in the region of £240,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded in 2087. Considering the 62 years remaining we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.

Alfriston case:

In 2011 we were approached by Dr M Bell who, having purchased a one bedroom flat in Alfriston in February 2003. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical properties in Alfriston with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 billed quarterly. The lease termination date was on 27 October 2076. Taking into account 51 years left we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.