Alsager leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Alsager will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Alsager,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alsager valuers.
Jamie owned a conversion apartment in Alsager on the market with a lease of a little over 59 years left. Jamie on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
In 2011 we were e-mailed by Ms M James who, having owned a first floor apartment in Alsager in May 2005. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical properties in Alsager with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 collected annually. The lease elapsed on 7 October 2080. Considering the 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus costs.
Last year we were phoned by Mr and Mrs. L Bertrand , who moved into a studio apartment in Alsager in May 2000. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparable homes in Alsager with a long lease were worth £290,000. The average ground rent payable was £45 collected yearly. The lease finished on 14 February 2100. Taking into account 74 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.