For anyone whose Altrincham flat is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Altrincham with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Altrincham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy discussions with the landlord of her purpose-built apartment in Altrincham, Rachel commenced the lease extension process as the eighty year deadline was fast nearing. The legal work was finalised in January 2009. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were phoned by Ms U Brown who, having was assigned a lease of a basement apartment in Altrincham in August 2009. The question was if we could estimate the price could be for a 90 year lease extension. Identical homes in Altrincham with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease finished in 2078. Considering the 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
Dr N Hill bought a first floor flat in Altrincham in November 2005. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Altrincham with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease finished in 2098. Given that there were 72 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.