When it comes to domestic leasehold premises in Alsager, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Residents in Alsager with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has below 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property 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 are not acceptable. 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with undertake Alsager 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 conveyancer we work with provide it.
In the wake of eight months of protracted discussions with the landlord of her two bedroom flat in Alsager, Rachel initiated the lease extension process as the eighty year mark was quickly approaching. The lease extension was finalised in January 2005. The freeholder’s fees were negotiated to a tad over 500 pounds.
In 2014 we were contacted by Mr and Mrs. G Rodríguez who, having took over the lease of a one bedroom flat in Alsager in July 2001. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative residencies in Alsager with an extended lease were in the region of £198,800. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded on 16 May 2081. Having 55 years as a residual term we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of legals.
Ms Poppy James purchased a studio flat in Alsager in November 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable homes in Alsager with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 billed annually. The lease ended on 26 June 2101. Taking into account 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.