Macclesfield residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with procure 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 lawyer we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her purpose-built flat in Macclesfield, Jade commenced the lease extension process just as her lease was coming close to the critical eighty-year threshold. The lease extension was finalised in June 2007. The landlord’s costs were restricted to approximately 550 GBP.
In 2014 we were e-mailed by Mr and Mrs. T Dupont who, having purchased a one bedroom flat in Macclesfield in October 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Macclesfield with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2084. Having 59 years unexpired we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.
Mr and Mrs. P Cox took over the lease of a one bedroom apartment in Macclesfield in April 2004. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Macclesfield with an extended lease were valued around £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease elapsed on 26 March 2095. Considering the 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus professional charges.