It’s a harsh certainty that a Altrincham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Altrincham property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Altrincham will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Altrincham with in excess of 100 years left 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Altrincham,the lease extension experts that we work with will always be happy 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.
In recent months Max, started to get close to the eighty-year mark with the lease on his basement flat in Altrincham. In buying his home 18 years previously, the unexpired term was of no bearing. Fortunately, he noticed he would imminently be paying way over the odds for Extending the lease. Max extended the lease just under the wire in August. Max and the landlord who owned the flat above eventually settled on an amount of £5,500 . If the lease had slid to less than eighty years, the price would have gone up by at least £925.
Last year we were contacted by Mrs Amelia Lambert , who purchased a basement apartment in Altrincham in April 2009. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in Altrincham with 100 year plus lease were in the region of £252,800. The average ground rent payable was £65 billed yearly. The lease came to a finish on 13 May 2091. Having 65 years unexpired we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.
Last Autumn we were contacted by Dr Aimee Morgan , who acquired a newly refurbished flat in Altrincham in July 2010. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar properties in Altrincham with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed quarterly. The lease ended on 13 April 2080. Given that there were 54 years unexpired we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of costs.