The value of Alperton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Alperton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alperton valuers.
Henry owned a 2 bedroom apartment in Alperton on the market with a lease of just over 59 years outstanding. Henry informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mr G Watson who, having owned a recently refurbished flat in Alperton in September 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical flats in Alperton with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2096. Taking into account 70 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Alperton premises is 99 Connell Crescent in May 2013. the Tribunal held that the relevant sum for the purposes of the lease extension should be £72,566 to be paid by the leaseholder This case was in relation to 1 flat. The remaining number of years on the lease was 28.42 years.