Alderley Edge leases on residential deteriorating in value. Where your lease has about ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Leasehold owners in Alderley Edge will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Alderley Edge with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Alderley Edge can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Alderley Edge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Theo, started to get close to the 80-year mark with the lease on his one bedroom apartment in Alderley Edge. Having purchased his flat 19 years ago, the lease term was of little concern. As luck would have it, he became aware that he would soon be paying an escalated premium for a lease extension. Theo extended the lease at the eleventh hour in September. Theo and the freeholder ultimately agreed on a premium of £6,000 . If the lease had gone below 80 years, the amount would have increased by a minimum £1,050.
In 2014 we were phoned by Mrs Anna Ramírez who, having was assigned a lease of a purpose-built flat in Alderley Edge in October 2002. We are asked if we could estimate the premium could be to extend the lease by ninety years. Identical premises in Alderley Edge with 100 year plus lease were worth £186,000. The average ground rent payable was £65 collected monthly. The lease finished on 22 October 2083. Having 58 years left we calculated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus expenses.
Last Autumn we were contacted by Dr David Jones , who purchased a studio apartment in Alderley Edge in April 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Alderley Edge with an extended lease were valued around £250,000. The average ground rent payable was £50 collected annually. The lease expired in 2094. Taking into account 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.