For anyone whose Alderley Edge and Wilmslow flat is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Alderley Edge and Wilmslow with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Alderley Edge and Wilmslow 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.
Following unsuccessful discussions with the landlord of her first floor flat in Alderley Edge and Wilmslow, Katie commenced the lease extension process as the eighty year mark was rapidly advancing. The lease extension was concluded in May 2011. The freeholder’s fees were kept to an absolute minimum.
Dr F Morel was assigned a lease of a one bedroom flat in Alderley Edge and Wilmslow in May 1998. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Alderley Edge and Wilmslow with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed on 6 March 2077. Taking into account 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus legals.
Last Winter we were called by Mrs Danielle Roux , who completed a basement flat in Alderley Edge and Wilmslow in November 2011. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Alderley Edge and Wilmslow with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 collected quarterly. The lease came to a finish on 23 April 2097. Taking into account 72 years left we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of legals.