Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Altrincham. Clearly, the period of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Altrincham have the right to extend the lease for a further ninety years in accordance with legislation. Please give due deliberation before delaying your Altrincham lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Retaining our service gives you enhanced 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 in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the freeholder of her two bedroom flat in Altrincham, Paige commenced the lease extension process as the 80 year mark was quickly approaching. The legal work completed in October 2013. The landlord’s fees were restricted to under 450 GBP.
Last Christmas we were approach by Mr and Mrs. B Smith , who completed a one bedroom apartment in Altrincham in April 1997. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical homes in Altrincham with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 billed yearly. The lease concluded in 2093. Having 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Last Autumn we were phoned by Mrs Tia Ward , who bought a newly refurbished apartment in Altrincham in April 1998. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar properties in Altrincham with a long lease were worth £216,000. The mid-range ground rent payable was £60 collected annually. The lease ran out in 2082. Having 58 years unexpired we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.