Unfortunately that a Alderley Edge residential lease is a deteriorating asset. The lease value reduces 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 market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most flat owners in Alderley Edge will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify 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 is instigated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced 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 wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy correspondence with the landlord of her basement apartment in Alderley Edge, Danielle commenced the lease extension process as the eighty year threshold was quickly nearing. The transaction was concluded in June 2014. The landlord’s costs were negotiated to slightly above 500 pounds.
Ms Millie Stewart owned a basement apartment in Alderley Edge in August 2006. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical properties in Alderley Edge with an extended lease were valued around £235,200. The average ground rent payable was £45 invoiced annually. The lease expired on 5 September 2091. Taking into account 66 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
In 2013 we were called by Mr and Mrs. T Kelly who, having completed a garden apartment in Alderley Edge in July 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Alderley Edge with a long lease were valued around £275,000. The average amount of ground rent was £55 invoiced per annum. The lease end date was in 2102. Given that there were 77 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.