As the the remaining lease term of a Alderley Edge domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Alderley Edge will qualify for this right; however a lawyer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Alderley Edge,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alderley Edge valuers.
After lengthy correspondence with the freeholder of her studio apartment in Alderley Edge, Ellie commenced the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was concluded in April 2008. The freeholder’s charges were kept to an absolute minimum.
Dr T Nguyen moved into a basement flat in Alderley Edge in March 2008. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar properties in Alderley Edge with 100 year plus lease were valued around £254,200. The average amount of ground rent was £60 invoiced quarterly. The lease ended in 2076. Having 51 years unexpired we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including costs.
Last Christmas we were called by Mr Kian Scott , who bought a one bedroom flat in Alderley Edge in March 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Alderley Edge with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 collected per annum. The lease lapsed on 1 April 2087. Considering the 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.