Alsager leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Alsager will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Alsager 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 conveyancer we work with provide it.
In recent months Tommy, started to get near to the eighty-year threshold with the lease on his basement apartment in Alsager. Having bought his flat 18 years previously, the lease term was of no importance. Thankfully, he realised he needed to take steps soon on a lease extension. Tommy was able to extend his lease just under the wire in May. Tommy and the freeholder via the managing agents subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £975.
Mr and Mrs. T Gray owned a ground floor apartment in Alsager in October 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative homes in Alsager with an extended lease were worth £181,600. The average ground rent payable was £55 billed every twelve months. The lease came to a finish in 2077. Considering the 52 years remaining we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.
Last Christmas we were called by Mr and Mrs. S Martin , who acquired a one bedroom apartment in Alsager in February 2012. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Alsager with a long lease were worth £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease expiry date was on 16 November 2097. Taking into account 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.