Macclesfield leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Macclesfield will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Macclesfield with over 100 years outstanding on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Regardless of whether you are a tenant or a landlord in Macclesfield,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Macclesfield valuers.
Theo owned a 2 bedroom flat in Macclesfield on the market with a lease of a little over fifty eight years remaining. Theo informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to exercise his statutory right. Theo procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Summer we were phoned by Mr and Mrs. N White , who owned a ground floor flat in Macclesfield in June 2005. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical properties in Macclesfield with 100 year plus lease were worth £245,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated in 2094. Considering the 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Last Winter we were e-mailed by Dr Eli Lambert , who purchased a newly refurbished flat in Macclesfield in August 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Macclesfield with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease termination date was in 2105. Considering the 79 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.