Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Adlington. Inevitably, the term of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the residence needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Adlington have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Adlington lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Adlington leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago David, started to get close to the 80-year mark with the lease on his basement flat in Adlington. In buying his property two decades ago, the unexpired term was of minimal bearing. Fortunately, he became aware that he needed to take steps soon on a lease extension. David was able to extend his lease at the eleventh hour in June. David and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If the lease had descended to less than eighty years, the amount would have become more exhorbitant by at least £1,025.
In 2009 we were contacted by Dr Y Rodríguez who, having acquired a basement flat in Adlington in September 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Adlington with a long lease were worth £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease end date was in 2102. Given that there were 77 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.
Dr Teddy Martínez moved into a garden apartment in Adlington in July 1998. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable residencies in Adlington with a long lease were in the region of £183,600. The average amount of ground rent was £65 billed annually. The lease elapsed on 1 August 2082. Taking into account 57 years left we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.