The only way is down when it comes to Atherton lease terms. Atherton flats that have a remaining term fewer than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Atherton with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Atherton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her basement apartment in Atherton, Amy initiated the lease extension process as the 80 year mark was fast advancing. The transaction was finalised in August 2015. The landlord’s costs were negotiated to a tad over 450 pounds.
Last Christmas we were called by Mr and Mrs. B Thomas , who completed a basement flat in Atherton in March 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Atherton with a long lease were valued about £285,000. The average ground rent payable was £45 collected per annum. The lease finished on 21 March 2097. Having 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
In 2010 we were e-mailed by Dr Sam White who, having completed a garden apartment in Atherton in May 2004. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative flats in Atherton with an extended lease were valued around £233,200. The mid-range ground rent payable was £60 billed monthly. The lease ended on 10 January 2086. Having 61 years unexpired we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of costs.