The closer a residential lease in Altrincham gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Altrincham will meet the qualifying criteria; however a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Altrincham with over 100 years remaining 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure Altrincham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Callum was the the leasehold owner of a 2 bedroom flat in Altrincham being sold with a lease of a little over sixty years outstanding. Callum on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. R Morel who, having completed a first floor flat in Altrincham in August 2010. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative premises in Altrincham with a long lease were in the region of £171,800. The average amount of ground rent was £55 billed annually. The lease terminated on 3 April 2075. Taking into account 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.
Last February we were approach by Dr Owen Díaz , who took over the lease of a basement flat in Altrincham in July 1999. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Altrincham with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease ran out on 11 October 2096. Given that there were 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.