When it comes to long leasehold property in Alcester, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Anyone in Alcester with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has under eighty years outstanding, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Alcester with more than one hundred years left 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
The conveyancers that we work with undertake Alcester 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.
Last year Callum, came seriously close to the eighty-year threshold with the lease on his studio flat in Alcester. Having bought his flat twenty years ago, the length of the lease was of no concern. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Callum was able to extend his lease just in the nick of time last August. Callum and the freeholder subsequently settled on sum of £6,000 . If he failed to meet the deadline, the price would have increased by at least £850.
Dr Alexandra González was assigned a lease of a garden apartment in Alcester in April 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar residencies in Alcester with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 billed per annum. The lease elapsed in 2099. Given that there were 73 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Dr Georgina Murphy owned a purpose-built apartment in Alcester in March 1999. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Alcester with an extended lease were valued around £264,000. The average amount of ground rent was £60 collected yearly. The lease elapsed in 2079. Given that there were 53 years left we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus fees.