Macclesfield leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Macclesfield will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Macclesfield with more than 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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; |
| Chelsea Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Macclesfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jack was the the leasehold owner of a conversion flat in Macclesfield on the market with a lease of fraction over 72 years unexpired. Jack on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jack to exercise his statutory right. Jack obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Spring we were approach by Dr H Taylor , who purchased a ground floor flat in Macclesfield in January 1998. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Macclesfield with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease concluded on 15 May 2095. Considering the 69 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2012 we were contacted by Mrs Phoebe Taylor who, having was assigned a lease of a ground floor apartment in Macclesfield in February 2007. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable residencies in Macclesfield with a long lease were in the region of £290,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ran out on 15 May 2106. Given that there were 80 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.