With a domestic leasehold premises in Altrincham, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Anyone in Altrincham with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the current statute the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Altrincham with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Altrincham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Altrincham valuers.
Theo owned a 2 bedroom flat in Altrincham being sold with a lease of a little over 72 years unexpired. Theo informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last month we were approach by Dr Thomas Carter , who completed a first floor apartment in Altrincham in October 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Altrincham with an extended lease were in the region of £290,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2099. Considering the 73 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
In 2011 we were e-mailed by Dr V Ramírez who, having bought a basement apartment in Altrincham in May 2003. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical homes in Altrincham with an extended lease were in the region of £235,600. The average ground rent payable was £60 billed per annum. The lease came to a finish in 2088. Taking into account 62 years outstanding we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.