The nearer a domestic lease in Altrincham gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Altrincham will meet the qualifying criteria; that being said a lawyer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Altrincham can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
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 Altrincham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Jamie, started to get near to the 80-year mark with the lease on his one bedroom apartment in Altrincham. Having bought his home two decades ago, the unexpired term was of little significance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Jamie arranged for a lease extension just under the wire last June. Jamie and the freeholder via the management company in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,025.
Last Winter we were approach by Mr and Mrs. Y Collins , who purchased a one bedroom flat in Altrincham in November 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparable properties in Altrincham with a long lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expired on 1 September 2096. Given that there were 71 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
Mr and Mrs. H François acquired a newly refurbished apartment in Altrincham in September 2007. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable premises in Altrincham with an extended lease were valued around £225,800. The average ground rent payable was £60 collected quarterly. The lease expiry date was on 6 July 2085. Considering the 60 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 not including legals.