The re-sale value of a leasehold property in Alderley Edge is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded prior to the eighty year cut off point. Statute entitles Alderley Edge qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Lease extensions in Alderley Edge can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Alderley Edge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie owned a high value flat in Alderley Edge on the market with a lease of a little over 61 years unexpired. Freddie informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2010 we were e-mailed by Mrs Lydia Williams who, having was assigned a lease of a ground floor flat in Alderley Edge in October 2001. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Alderley Edge with an extended lease were worth £176,200. The average ground rent payable was £65 invoiced annually. The lease expired on 18 January 2081. Given that there were 56 years remaining we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus professional charges.
Ms Chantelle Lefèvre completed a newly refurbished flat in Alderley Edge in September 2007. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Alderley Edge with an extended lease were worth £242,600. The average ground rent payable was £45 billed monthly. The lease expired on 18 August 2092. Taking into account 67 years remaining we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.