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 becomes more expensive. It is the case that most Macclesfield tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Macclesfield you would be well advised to check if your lease has between 70 and 90 years left. There are compelling reasons why a Macclesfield leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
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.
Subsequent to protracted negotiations with the landlord of her first floor flat in Macclesfield, Phoebe initiated the lease extension process as the eighty year mark was rapidly advancing. The transaction was concluded in September 2014. The freeholder’s charges were negotiated to about 550 GBP.
Mr and Mrs. D Morel acquired a garden flat in Macclesfield in June 2004. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable homes in Macclesfield with an extended lease were in the region of £191,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2084. Given that there were 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including professional charges.
In 2009 we were approached by Mr and Mrs. T Collins who, having bought a basement flat in Macclesfield in August 1998. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable premises in Macclesfield with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected quarterly. The lease expiry date was in 2095. Given that there were 69 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.