With a long leasehold premises in Altrincham, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Altrincham with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has below 80 years left, under the current Act the freeholder can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Altrincham with in excess of 100 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Altrincham can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring 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 year Harrison, came precariously near to the eighty-year mark with the lease on his purpose- built apartment in Altrincham. Having bought his home 18 years previously, the unexpired term was of little importance. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Harrison extended the lease just under the wire in April. Harrison and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he not met the deadline, the sum would have increased by at least £1,050.
In 2010 we were contacted by Ms L Girard who, having completed a studio apartment in Altrincham in March 2007. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical residencies in Altrincham with an extended lease were valued about £270,000. The mid-range ground rent payable was £65 collected monthly. The lease ran out on 22 March 2094. Considering the 68 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were contacted by Dr R Wright who, having completed a recently refurbished apartment in Altrincham in March 2009. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Altrincham with an extended lease were in the region of £208,600. The average ground rent payable was £60 billed monthly. The lease elapsed in 2083. Given that there were 57 years remaining we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.