It’s a harsh 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 first few years due to the deflation being disguised by increases in the Alderley Edge property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips below 80 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 additional value that a lease extension will add the property Most leasehold owners in Alderley Edge will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you increased control over the value of your Alderley Edge leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago David, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Alderley Edge. Having purchased his flat 18 years ago, the unexpired term was of little interest. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. David was able to extend his lease just ahead of time last August. David and the freeholder subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the amount would have gone up by at least £1,050.
Last Summer we were called by Dr Leo Sánchez , who bought a studio flat in Alderley Edge in March 2003. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable residencies in Alderley Edge with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed in 2099. Considering the 74 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mr Hunter Cox owned a newly refurbished flat in Alderley Edge in October 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable premises in Alderley Edge with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected annually. The lease terminated in 2079. Taking into account 54 years left we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including expenses.