Alderley Edge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Alderley Edge residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Alderley Edge you should investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Alderley Edge flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Alderley Edge with more than one hundred years remaining 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with handle Alderley Edge 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 lawyer we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her first floor flat in Alderley Edge, Rachel commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction completed in May 2015. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. L Wood who, having took over the lease of a basement flat in Alderley Edge in November 1998. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Alderley Edge with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 collected annually. The lease elapsed on 12 April 2083. Given that there were 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
Last month we were called by Mr and Mrs. J Anderson , who was assigned a lease of a first floor apartment in Alderley Edge in August 2011. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Alderley Edge with an extended lease were in the region of £245,000. The average amount of ground rent was £50 invoiced yearly. The lease expired in 2094. Having 68 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.