Unfortunately that a Atherton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Atherton property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Atherton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Atherton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Off the back of protracted correspondence with the freeholder of her ground floor apartment in Atherton, Olivia initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The transaction completed in March 2012. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. A Bernard took over the lease of a one bedroom apartment in Atherton in October 2010. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar residencies in Atherton with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed in 2102. Considering the 77 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Last Christmas we were contacted by Mr T Lewis , who moved into a first floor flat in Atherton in September 1998. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical properties in Atherton with 100 year plus lease were valued about £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished in 2091. Taking into account 66 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of expenses.