When it comes to domestic leasehold property in Alston, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Leasehold owners in Alston with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has less than eighty years remaining, under the relevant legislation the freeholder can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Alston can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 dealing with Alston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan owned a studio apartment in Alston being marketed with a lease of a few days over sixty years outstanding. Ryan on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. N Campbell acquired a one bedroom apartment in Alston in August 2006. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Alston with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 billed every twelve months. The lease ended in 2087. Taking into account 63 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of fees.
Mrs Anna Girard was assigned a lease of a basement apartment in Alston in August 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Alston with an extended lease were valued around £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease elapsed in 2076. Taking into account 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.