Main reasons to start your Altrincham lease extension

Why you should commence your Altrincham lease extension today:

A Altrincham leasehold property depreciates with the years remaining on the lease.

Altrincham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Altrincham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Altrincham you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Altrincham with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not grant a mortgage on a short lease

What makes us experts in Altrincham lease extensions?

Regardless of whether you are a tenant or a freeholder in Altrincham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Altrincham valuers.

Altrincham Lease Extension Case Studies:

Gabriel, Altrincham, Greater Manchester,

Gabriel owned a 2 bedroom flat in Altrincham on the market with a lease of fraction over 72 years unexpired. Gabriel informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Altrincham case:

Mr and Mrs. C Bertrand moved into a recently refurbished apartment in Altrincham in May 1997. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar properties in Altrincham with an extended lease were worth £216,000. The mid-range ground rent payable was £60 billed per annum. The lease expired on 16 January 2084. Considering the 58 years left we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.

Altrincham case:

Last March we were e-mailed by Mr and Mrs. N Green , who took over the lease of a one bedroom flat in Altrincham in March 2006. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Altrincham with a long lease were valued about £200,000. The average ground rent payable was £50 collected quarterly. The lease ran out on 5 September 2104. Taking into account 78 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.