Atherton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Atherton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Atherton you must investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Atherton flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over one hundred years remaining 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 ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Atherton 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 conveyancing solicitor we work with provide it.
Last year Hugo, came very close to the 80-year threshold with the lease on his ground floor flat in Atherton. In buying his home 19 years ago, the lease term was of minimal bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Hugo arranged for a lease extension at the eleventh hour last July. Hugo and the landlord eventually agreed on sum of £5,000 . If the lease had dropped below 80 years, the price would have increased by a minimum £1,125.
Last January we were approach by Dr Y Rose , who purchased a garden flat in Atherton in January 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Atherton with 100 year plus lease were valued about £191,400. The average amount of ground rent was £55 invoiced every twelve months. The lease finished in 2080. Given that there were 54 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including expenses.
Dr L Anderson moved into a purpose-built flat in Atherton in September 2008. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative homes in Atherton with an extended lease were valued around £295,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed in 2100. Considering the 74 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.