Macclesfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Macclesfield tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Macclesfield you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Macclesfield with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
|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.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
Regardless of whether you are a tenant or a landlord in Macclesfield,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Macclesfield valuers.
In the wake of 6 months of lengthy negotiations with the freeholder of her one bedroom apartment in Macclesfield, Niamh initiated the lease extension process as the eighty year threshold was swiftly nearing. The lease extension completed in June 2007. The freeholder’s costs were kept to an absolute minimum.
Last year we were approach by Dr E Leroy , who bought a basement flat in Macclesfield in March 2009. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Macclesfield with an extended lease were worth £227,800. The average ground rent payable was £45 invoiced annually. The lease expired in 2086. Given that there were 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
In 2012 we were contacted by Mr and Mrs. C Wright who, having acquired a one bedroom flat in Macclesfield in June 2007. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable properties in Macclesfield with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 collected annually. The lease elapsed on 21 October 2097. Taking into account 76 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.