Adlington leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Adlington will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Adlington with more than one hundred years outstanding on the lease are often referred to as ‘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. |
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with procure Adlington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago James, started to get near to the eighty-year mark with the lease on his first floor flat in Adlington. In buying his flat twenty years previously, the unexpired term was of no relevance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. James arranged for a lease extension at the eleventh hour last September. James and the freeholder via the managing agents subsequently settled on a premium of £5,500 . If the lease had descended lower than 80 years, the premium would have increased by a minimum £925.
Ms Daisy Thompson bought a studio apartment in Adlington in September 2009. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative homes in Adlington with a long lease were in the region of £227,800. The mid-range ground rent payable was £45 collected every twelve months. The lease expired on 1 February 2090. Considering the 65 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
In 2011 we were called by Dr Elizabeth Vincent who, having bought a one bedroom apartment in Adlington in August 2000. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical premises in Adlington with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 billed monthly. The lease end date was in 2101. Taking into account 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.