Main reasons to start your Macclesfield lease extension

Top reasons for lease extension now:

A Macclesfield leasehold property depreciates with the years remaining on the lease.

Macclesfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Macclesfield residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Macclesfield you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

Macclesfield property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to grant a mortgage on a short lease

Lenders are making their criteria more stringent and a meaningful number now want flats to have a minimum of 60 if not 70 years left at the expiry of the mortgage. Considering plenty of flats in Macclesfield were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.

What makes us experts in Macclesfield lease extensions?

Irrespective of whether you are a tenant or a landlord in Macclesfield,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Macclesfield valuers.

Macclesfield Lease Extension Case Studies:

Mason, Macclesfield, Cheshire

Half a year ago Mason, started to get close to the 80-year threshold with the lease on his ground floor apartment in Macclesfield. In buying his property two decades ago, the lease term was of little relevance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Mason extended the lease just under the wire in January. Mason and the freeholder ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £900.

Macclesfield case:

Dr N Anderson completed a garden apartment in Macclesfield in October 2008. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Macclesfield with an extended lease were worth £208,200. The mid-range amount of ground rent was £65 collected quarterly. The lease ended on 7 November 2087. Considering the 61 years unexpired we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including legals.

Macclesfield case:

Dr Ben Morel took over the lease of a one bedroom apartment in Macclesfield in April 1996. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable premises in Macclesfield with an extended lease were valued about £260,000. The average ground rent payable was £50 invoiced per annum. The lease terminated in 2098. Given that there were 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.