Unfortunately that a Altrincham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Altrincham property market.Once your lease gets to 85ish years, you should 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 slips below 80 years - otherwise a higher amount will be due. Most flat owners in Altrincham will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Altrincham can be a difficult process. We recommend you procure professional help 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 dealing with Altrincham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Leo, started to get near to the eighty-year threshold with the lease on his garden flat in Altrincham. In buying his home 19 years ago, the lease term was of little bearing. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Leo arranged for a lease extension just in the nick of time last August. Leo and the freeholder ultimately settled on an amount of £5,000 . If he not met the deadline, the sum would have increased by a minimum £1,050.
Last year we were contacted by Mrs Charlotte González , who completed a basement flat in Altrincham in June 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Altrincham with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 billed monthly. The lease concluded on 9 September 2088. Considering the 63 years remaining we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of fees.
Mr and Mrs. O Nguyen was assigned a lease of a garden apartment in Altrincham in November 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Altrincham with an extended lease were valued around £181,600. The average ground rent payable was £55 invoiced monthly. The lease ran out on 7 January 2077. Taking into account 52 years remaining we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.