There is no doubt about it a leasehold flat or house in Altrincham is a wasting asset as a result of the diminishing lease term. If the residual term has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Altrincham will qualify for this right; nevertheless a lawyer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Altrincham with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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; |
| Chelsea 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Altrincham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Milo was the the leasehold owner of a high value flat in Altrincham on the market with a lease of fraction over fifty eight years outstanding. Milo on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Last year we were called by Mr and Mrs. N Scott , who completed a studio apartment in Altrincham in March 1996. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Altrincham with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 collected quarterly. The lease terminated in 2086. Given that there were 61 years unexpired we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus costs.
In 2011 we were called by Mrs K Sánchez who, having completed a garden flat in Altrincham in May 2008. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable homes in Altrincham with a long lease were valued about £171,800. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2075. Taking into account 50 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.