As the length of the unexpired term of a Alston residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Alston will qualify for this right; nevertheless a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same 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 ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Alston can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Alston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Toby, started to get near to the 80-year threshold with the lease on his studio flat in Alston. Having bought his home two decades ago, the lease term was of little interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Toby arranged for a lease extension just under the wire in September. Toby and the freeholder via the management company in the end agreed on an amount of £5,000 . If he not met the deadline, the figure would have become more exhorbitant by at least £1,000.
Mrs D Thompson took over the lease of a basement apartment in Alston in September 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative premises in Alston with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished on 7 February 2089. Considering the 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.
In 2014 we were contacted by Ms Alisha González who, having purchased a one bedroom apartment in Alston in March 2011. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Alston with an extended lease were in the region of £184,000. The average ground rent payable was £55 invoiced annually. The lease ran out in 2078. Having 53 years unexpired we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.