The nearer a domestic lease in Alsager nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Alsager will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Alsager with over one hundred 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives 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.
Off the back of unsuccessful discussions with the landlord of her one bedroom flat in Alsager, Samantha initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work completed in August 2007. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were contacted by Dr Sebastian Wright who, having took over the lease of a ground floor apartment in Alsager in January 2000. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative flats in Alsager with an extended lease were worth £295,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 5 June 2099. Given that there were 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2012 we were e-mailed by Dr Logan Simon who, having acquired a basement flat in Alsager in March 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar properties in Alsager with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 billed per annum. The lease ended in 2088. Given that there were 63 years remaining we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of fees.