Chances are that if you own a flat in Altrincham you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Altrincham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold proprietor of a 2 bedroom apartment in Altrincham being marketed with a lease of fraction over fifty eight years outstanding. Ollie on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Dr F Simon acquired a first floor apartment in Altrincham in May 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Altrincham with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish in 2102. Considering the 76 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Last June we were phoned by Dr William Reed , who took over the lease of a recently refurbished apartment in Altrincham in May 2001. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative properties in Altrincham with a long lease were worth £252,800. The average ground rent payable was £65 collected quarterly. The lease concluded on 24 February 2091. Given that there were 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including legals.