With a long leasehold property in Alsager, you are actually buying a right to reside in a property for a prescribed time frame. 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 may 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 becomes disproportionately more expensive especially once there are fewer than eighty years left. Leasehold owners in Alsager with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure 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.
Last year Hugo, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Alsager. Having bought his property two decades ago, the length of the lease was of no significance. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Hugo extended the lease just under the wire last June. Hugo and the freeholder eventually agreed on sum of £5,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,100.
In 2011 we were approached by Dr Tommy Gómez who, having acquired a one bedroom apartment in Alsager in June 2004. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical residencies in Alsager with 100 year plus lease were in the region of £218,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished in 2085. Considering the 59 years remaining we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of expenses.
Last Summer we were called by Mr and Mrs. O Alexander , who was assigned a lease of a ground floor apartment in Alsager in September 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Alsager with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired on 28 February 2105. Taking into account 79 years remaining we calculated the premium to the landlord for the lease extension to be within £7,600 and £8,800 plus fees.