With a residential leasehold premises in Alsager, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Alsager with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the relevant statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Alsager with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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:
|
| 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 |
| Yorkshire 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. |
Lease extensions in Alsager can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
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 procuring Alsager lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli owned a high value flat in Alsager being marketed with a lease of fraction over fifty eight years outstanding. Eli on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Eli to exercise his statutory right. Eli procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were phoned by Dr Arthur Anderson , who was assigned a lease of a first floor apartment in Alsager in February 2012. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Alsager with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 collected per annum. The lease ran out on 1 April 2086. Given that there were 60 years remaining we calculated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 exclusive of costs.
Last February we were approach by Dr Noah Morel , who completed a recently refurbished flat in Alsager in August 2001. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Alsager with a long lease were valued around £210,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2106. Taking into account 80 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.