The re-sale value of a leasehold property in Alderley Edge and Wilmslow depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised well before the eighty year threshold. Current legislation enables Alderley Edge and Wilmslow qualifying lessees to an additional term of 90 years in addition to the existing term, at a notional rent (zero ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you enhanced control over the value of your Alderley Edge and Wilmslow leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy negotiations with the landlord of her one bedroom flat in Alderley Edge and Wilmslow, Georgina initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The lease extension completed in January 2015. The freeholder’s charges were kept to an absolute minimum.
Dr P White was assigned a lease of a one bedroom flat in Alderley Edge and Wilmslow in November 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical properties in Alderley Edge and Wilmslow with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 collected yearly. The lease lapsed on 21 April 2095. Considering the 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
In 2014 we were e-mailed by Mrs Holly Sánchez who, having purchased a first floor flat in Alderley Edge and Wilmslow in January 2003. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Alderley Edge and Wilmslow with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease end date was in 2084. Given that there were 58 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.