When it comes to long leasehold premises in Alderley Edge, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Alderley Edge with a lease drawing near to 81 years left should seriously think of extending it without delay. When the lease term has fewer than 80 years left, under the relevant statute the freeholder is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Alderley Edge with in excess of one hundred years outstanding 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Alderley Edge can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Aiden was the the leasehold owner of a conversion apartment in Alderley Edge on the market with a lease of just over 61 years left. Aiden on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were called by Mrs Alexandra Scott who, having was assigned a lease of a purpose-built flat in Alderley Edge in November 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Similar residencies in Alderley Edge with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2087. Having 63 years unexpired we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus costs.
In 2014 we were e-mailed by Mr Harvey Harris who, having bought a newly refurbished flat in Alderley Edge in August 1996. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Alderley Edge with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £55 invoiced yearly. The lease lapsed on 16 March 2098. Having 74 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.