Alsager leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Alsager residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Alsager you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Alsager with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Alsager can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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.
18 months ago Toby, came very close to the 80-year threshold with the lease on his garden apartment in Alsager. Having purchased his flat two decades ago, the length of the lease was of minimal significance. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Toby was able to extend his lease just ahead of time last August. Toby and the freeholder ultimately settled on the final figure of £5,500 . If the lease had fallen to less than eighty years, the price would have escalated by a minimum £900.
Last Spring we were e-mailed by Dr R Scott , who moved into a one bedroom apartment in Alsager in July 2003. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Alsager with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2096. Given that there were 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
In 2011 we were called by Dr Anna Mason who, having owned a newly refurbished flat in Alsager in June 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Alsager with a long lease were valued around £218,400. The average ground rent payable was £60 collected yearly. The lease termination date was on 2 May 2085. Considering the 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.