The market value of a leasehold property in Altrincham depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year mark. Statute entitles Altrincham qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Altrincham with over one hundred years left on the lease are often 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Altrincham can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 Altrincham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a high value apartment in Altrincham on the market with a lease of just over 61 years remaining. Teddy informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last Spring we were e-mailed by Ms S Morris , who acquired a one bedroom apartment in Altrincham in May 2000. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable flats in Altrincham with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed annually. The lease lapsed in 2102. Having 77 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
Last Summer we were approach by Dr Y Ward , who completed a studio apartment in Altrincham in July 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparative homes in Altrincham with a long lease were in the region of £267,600. The average amount of ground rent was £65 invoiced yearly. The lease elapsed on 18 January 2092. Considering the 67 years left we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including fees.