It’s an underpublicised truth that a Alderley Edge residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Alderley Edge property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Alderley Edge will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Alderley Edge with over one hundred years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Alderley Edge can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
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.
Joseph was the the leasehold owner of a studio apartment in Alderley Edge on the market with a lease of a few days over 72 years remaining. Joseph informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2014 we were phoned by Dr James Bernard who, having acquired a basement apartment in Alderley Edge in January 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Alderley Edge with an extended lease were worth £245,000. The average amount of ground rent was £50 billed monthly. The lease terminated in 2094. Given that there were 68 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Ms Zoe Sharif owned a recently refurbished apartment in Alderley Edge in November 2002. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative flats in Alderley Edge with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease terminated on 7 May 2105. Having 79 years remaining we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.