When it comes to long leasehold property in Alsager, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Anyone in Alsager with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has below eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Alsager with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | 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. |
Engaging our service will provide you increased control over the value of your Alsager leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin was the the leasehold owner of a 2 bedroom apartment in Alsager on the market with a lease of a little over 72 years outstanding. Benjamin on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Last Winter we were called by Mr I Gómez , who was assigned a lease of a purpose-built flat in Alsager in June 2005. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical properties in Alsager with a long lease were in the region of £206,200. The mid-range amount of ground rent was £60 billed monthly. The lease finished on 22 June 2081. Considering the 56 years left we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
Last Spring we were e-mailed by Dr Samuel Lewis , who moved into a one bedroom flat in Alsager in May 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Alsager with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced quarterly. The lease ended on 1 June 2102. Having 77 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.