The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Adlington have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Adlington lease extension. Shelving that expense today simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold residencies in Adlington with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Yorkshire 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. |
Lease extensions in Adlington can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Adlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper was the the leasehold owner of a high value flat in Adlington being sold with a lease of fraction over sixty years left. Jasper on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Dr David Rodríguez purchased a recently refurbished flat in Adlington in August 2009. The question was if we could approximate the price could be for a 90 year lease extension. Identical residencies in Adlington with a long lease were valued about £264,000. The average ground rent payable was £60 billed monthly. The lease ended on 25 July 2078. Taking into account 53 years unexpired we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus professional charges.
Last month we were contacted by Mr and Mrs. R Díaz , who acquired a studio flat in Adlington in June 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Adlington with 100 year plus lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 16 July 2089. Considering the 64 years left we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus expenses.