Alderley Edge and Wilmslow leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher premium will be payable. Flat owners in Alderley Edge and Wilmslow will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Alderley Edge and Wilmslow with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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 are not acceptable. 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. |
| 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. |
Lease extensions in Alderley Edge and Wilmslow can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 dealing with Alderley Edge and Wilmslow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William was the the leasehold proprietor of a high value apartment in Alderley Edge and Wilmslow being marketed with a lease of just over 59 years left. William informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were William to exercise his statutory right. William obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2012 we were contacted by Mr Blake Rose who, having bought a one bedroom flat in Alderley Edge and Wilmslow in June 2008. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Alderley Edge and Wilmslow with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated in 2102. Having 76 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Last Winter we were approach by Mrs P Baker , who completed a basement apartment in Alderley Edge and Wilmslow in July 2007. The question was if we could estimate the price could be to extend the lease by 90 years. Similar residencies in Alderley Edge and Wilmslow with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease lapsed in 2091. Taking into account 65 years unexpired we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus costs.