It’s a harsh truth that a Adlington residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Adlington property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Adlington will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Adlington with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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 |
Engaging our service will provide you better control over the value of your Adlington leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her first floor flat in Adlington, Paige started the lease extension process just as the lease was nearing the all-important 80-year threshold. The lease extension completed in November 2011. The freeholder’s costs were negotiated to under 700 GBP.
Mr and Mrs. O Bertrand was assigned a lease of a basement flat in Adlington in September 1998. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Similar homes in Adlington with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed on 4 August 2105. Given that there were 79 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
Dr Isaac Dupont moved into a one bedroom flat in Adlington in August 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Adlington with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 collected per annum. The lease ran out in 2085. Having 59 years left we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus professional charges.