When it comes to long leasehold premises in Alsager, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Alsager with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has below 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered 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 45 years remaining, the premises will be worth the same as 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Alsager leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Austin, started to get close to the 80-year threshold with the lease on his basement flat in Alsager. Having purchased his property 18 years previously, the length of the lease was of little interest. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Austin was able to extend his lease just ahead of time last January. Austin and the freeholder ultimately agreed on sum of £5,000 . If the lease had fallen to less than 80 years, the amount would have increased by at least £850.
Last Winter we were called by Mrs Anna Girard , who moved into a studio apartment in Alsager in March 2011. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Alsager with a long lease were in the region of £235,600. The mid-range ground rent payable was £60 billed monthly. The lease ran out in 2088. Given that there were 62 years as a residual term we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including professional charges.
Mr L Campbell was assigned a lease of a first floor apartment in Alsager in August 2011. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Alsager with an extended lease were valued about £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2077. Given that there were 51 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.