Alderley Edge leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Alderley Edge will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Alderley Edge with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Alderley Edge leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her two bedroom apartment in Alderley Edge, Alicia initiated the lease extension process as the 80 year deadline was rapidly approaching. The legal work was finalised in September 2014. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. R Bonnet completed a first floor flat in Alderley Edge in May 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Alderley Edge with a long lease were valued around £264,000. The average ground rent payable was £60 invoiced per annum. The lease expired in 2079. Considering the 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including legals.
In 2013 we were called by Mrs S Girard who, having took over the lease of a studio flat in Alderley Edge in February 2005. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Alderley Edge with an extended lease were in the region of £220,400. The average ground rent payable was £45 billed per annum. The lease termination date was on 17 May 2090. Taking into account 64 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus costs.