For those whose Alsager home is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold residencies in Alsager with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Alsager,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alsager valuers.
After protracted correspondence with the landlord of her leasehold apartment in Alsager, Abbie initiated the lease extension process as the 80 year threshold was quickly nearing. The legal work was concluded in August 2007. The landlord’s costs were negotiated to under 550 GBP.
Last Summer we were called by Mrs L Phillips , who moved into a one bedroom flat in Alsager in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Alsager with 100 year plus lease were valued about £223,400. The mid-range ground rent payable was £60 collected annually. The lease expired in 2084. Considering the 59 years remaining we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of fees.
In 2012 we were approached by Dr C López who, having took over the lease of a studio apartment in Alsager in June 1998. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical premises in Alsager with an extended lease were worth £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2104. Having 79 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.