Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Alfriston. Clearly, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Alfriston have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give due attention before delaying your Alfriston lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society |
The lawyers that we work with undertake Alfriston 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 conveyancing solicitor we work with provide it.
Kai was the the leasehold proprietor of a high value flat in Alfriston being marketed with a lease of just over 61 years outstanding. Kai on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. F Peterson who, having took over the lease of a recently refurbished apartment in Alfriston in November 2011. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Alfriston with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced annually. The lease came to a finish on 9 April 2092. Taking into account 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.
Mrs Bethany Bonnet moved into a ground floor apartment in Alfriston in February 2011. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Alfriston with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed monthly. The lease end date was on 4 November 2081. Taking into account 55 years remaining we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.