When it comes to domestic leasehold premises in Adlington, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Adlington with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has fewer than eighty years outstanding, under the current Act the freeholder can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Adlington,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 Adlington valuers.
Off the back of lengthy negotiations with the freeholder of her ground floor flat in Adlington, Bethany started the lease extension process as the eighty year deadline was fast nearing. The transaction completed in June 2007. The freeholder’s costs were negotiated to below 700 GBP.
Last month we were called by Dr F Peterson , who owned a basement flat in Adlington in July 1997. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Adlington with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished in 2097. Considering the 72 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last month we were called by Mr and Mrs. S Simon , who moved into a one bedroom apartment in Adlington in June 2004. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Adlington with a long lease were valued about £256,600. The average amount of ground rent was £60 billed yearly. The lease elapsed on 19 September 2077. Given that there were 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of expenses.