With a long leasehold property in Alsager, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider 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 greater notably when there are less than eighty years remaining. Residents in Alsager with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has less than 80 years outstanding, under the current Act the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Alsager with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Alsager lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her leasehold flat in Alsager, Megan initiated the lease extension process as the eighty year deadline was quickly advancing. The legal work was concluded in March 2007. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. N Moreau who, having was assigned a lease of a one bedroom flat in Alsager in July 1998. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Identical residencies in Alsager with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 collected every twelve months. The lease finished on 21 July 2093. Considering the 68 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Last May we were approach by Dr B Moore , who was assigned a lease of a studio apartment in Alsager in March 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar residencies in Alsager with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 invoiced monthly. The lease expired on 26 June 2083. Having 58 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.