Unfortunately that a Alsager residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Alsager property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Alsager will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers that we work with handle 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.
Following protracted correspondence with the freeholder of her leasehold apartment in Alsager, Paige started the lease extension process as the 80 year threshold was quickly approaching. The legal work was concluded in April 2005. The freeholder’s fees were restricted to below 650 pounds.
Last Spring we were approach by Ms Chelsea Pérez , who moved into a one bedroom apartment in Alsager in February 1997. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable flats in Alsager with a long lease were in the region of £201,200. The average ground rent payable was £55 collected quarterly. The lease ran out on 28 October 2082. Taking into account 56 years as a residual term we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
Last September we were contacted by Dr C Davies , who bought a studio apartment in Alsager in May 1995. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable premises in Alsager with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 invoiced yearly. The lease end date was on 21 April 2102. Considering the 76 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.