The market value of a leasehold property in Altrincham depends on how long the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be finalised well before the 80 year cut off point. Statute enables Altrincham qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank |
Retaining our service gives you better control over the value of your Altrincham leasehold, as your property will be more valuable and saleable in respect of lease length should you decide 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.
Half a year ago Aarav, came very close to the eighty-year threshold with the lease on his ground floor apartment in Altrincham. Having purchased his flat twenty years previously, the length of the lease was of minimal relevance. Thankfully, he noticed he needed to take steps soon on a lease extension. Aarav extended the lease at the eleventh hour in July. Aarav and the freeholder via the management company ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by at least £850.
In 2010 we were e-mailed by Dr Francesca Thomas who, having purchased a ground floor apartment in Altrincham in July 2005. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative properties in Altrincham with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded in 2103. Taking into account 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Dr H Rivera acquired a recently refurbished apartment in Altrincham in July 2008. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable residencies in Altrincham with 100 year plus lease were valued about £260,200. The average amount of ground rent was £65 invoiced annually. The lease ended on 26 September 2092. Considering the 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.