The value of Alcester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than eighty years
Leasehold premises in Alcester with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure 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 lawyer we work with provide it.
In 2014 Riley, came perilously close to the eighty-year mark with the lease on his garden flat in Alcester. Having bought his home two decades ago, the unexpired term was of little bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Riley arranged for a lease extension just under the wire last June. Riley and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the amount would have become more costly by at least £1,075.
Dr Riley Baker took over the lease of a one bedroom apartment in Alcester in April 2010. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative homes in Alcester with a long lease were worth £235,200. The average amount of ground rent was £45 billed quarterly. The lease came to a finish in 2092. Considering the 66 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Last Christmas we were e-mailed by Mr and Mrs. F Clark , who was assigned a lease of a one bedroom apartment in Alcester in January 1995. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar premises in Alcester with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease finished in 2103. Considering the 77 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.