With a residential leasehold premises in Alcester, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Alcester with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than eighty years outstanding, under the current Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Alcester can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Alcester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her garden flat in Alcester, Sian initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The transaction was finalised in August 2015. The freeholder’s costs were restricted to under 500 GBP.
Mr and Mrs. O Bertrand took over the lease of a one bedroom flat in Alcester in May 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical premises in Alcester with a long lease were valued around £280,000. The average ground rent payable was £55 invoiced per annum. The lease ended on 26 August 2104. Considering the 78 years outstanding we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. W Brown moved into a first floor flat in Alcester in July 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative properties in Alcester with an extended lease were worth £191,000. The average amount of ground rent was £65 invoiced annually. The lease elapsed on 8 January 2084. Considering the 58 years left we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.