Alderley Edge leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Alderley Edge will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Alderley Edge with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service gives you better 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her basement apartment in Alderley Edge, Amelia initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was finalised in July 2009. The landlord’s fees were negotiated to slightly above 700 pounds.
In 2010 we were contacted by Mrs J White who, having moved into a studio flat in Alderley Edge in August 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Alderley Edge with an extended lease were worth £227,800. The average amount of ground rent was £45 billed every twelve months. The lease elapsed on 8 November 2091. Taking into account 65 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Last Spring we were phoned by Mr Matthew Edwards , who purchased a studio apartment in Alderley Edge in August 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Alderley Edge with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 collected yearly. The lease ran out in 2102. Considering the 76 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.