The market value of Altrincham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than 80 years
Leasehold premises in Altrincham with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Altrincham,the lease extension experts that we work with will always be willing 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.
During the course of the last few months Jamie, started to get near to the eighty-year mark with the lease on his leasehold apartment in Altrincham. In buying his flat 19 years ago, the lease term was of little significance. Fortunately, he recognised he needed to take action soon on a lease extension. Jamie arranged for a lease extension just in the nick of time last August. Jamie and the freeholder via the managing agents eventually settled on sum of £5,500 . If the lease had fallen to less than eighty years, the amount would have gone up by a minimum £1,000.
In 2012 we were called by Mr and Mrs. A Girard who, having moved into a purpose-built apartment in Altrincham in June 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Altrincham with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expired on 11 April 2106. Given that there were 80 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
Mr D Harris owned a basement apartment in Altrincham in February 2007. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical premises in Altrincham with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 billed annually. The lease ran out in 2095. Having 69 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.