With a domestic leasehold property in Macclesfield, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Macclesfield with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has less than eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder 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 in-depth market knowledge and the close ties they enjoy with Macclesfield valuers.
Off the back of protracted correspondence with the freeholder of her basement apartment in Macclesfield, Amy started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension was finalised in June 2007. The freeholder’s fees were restricted to less than 500 GBP.
Last year we were called by Dr D Moreau , who owned a studio flat in Macclesfield in July 2002. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative homes in Macclesfield with an extended lease were worth £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed in 2086. Given that there were 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus expenses.
Dr Kian Michel owned a purpose-built flat in Macclesfield in February 2008. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar properties in Macclesfield with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded in 2097. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.