Unfortunately that a Macclesfield residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Macclesfield property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Macclesfield will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a freeholder in Macclesfield,the lease extension lawyers that we work with will always be willing 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.
Stanley was the the leasehold owner of a high value flat in Macclesfield being sold with a lease of just over 61 years unexpired. Stanley on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2009 we were e-mailed by Dr U Rodríguez who, having completed a ground floor apartment in Macclesfield in October 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable residencies in Macclesfield with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 collected annually. The lease finished in 2104. Having 78 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
In 2009 we were approached by Ms J Watson who, having was assigned a lease of a basement apartment in Macclesfield in January 2006. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Macclesfield with a long lease were worth £191,000. The mid-range ground rent payable was £65 invoiced monthly. The lease came to a finish in 2084. Taking into account 58 years unexpired we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including expenses.