Main reasons to commence your Macclesfield lease extension

Why you should start your Macclesfield lease extension today:

A Macclesfield leasehold property depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Macclesfield, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years remaining. Residents in Macclesfield with a lease nearing 81 years unexpired should seriously think of extending it without delay. When a lease has less than 80 years left, under the relevant Act the landlord can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Macclesfield property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions will not issue a mortgage with a short lease

Banks and building societies are tightening their criteria and a meaningful number now want flats to have a minimum of sixty if not seventy years left at the end of the mortgage. Given that plenty of flats in Macclesfield were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

Get in touch with one of our Macclesfield lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Macclesfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Macclesfield valuers.

Macclesfield Lease Extension Case Summaries:

Finley, Macclesfield, Cheshire

Two years ago Finley, started to get near to the 80-year mark with the lease on his garden flat in Macclesfield. In buying his flat two decades ago, the unexpired term was of minimal interest. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Finley extended the lease just under the wire last September. Finley and the freeholder via the managing agents subsequently settled on sum of £5,500 . If the lease had descended lower than eighty years, the amount would have gone up by a minimum £950.

Macclesfield case:

In 2013 we were phoned by Dr Luca Morgan who, having bought a recently refurbished flat in Macclesfield in June 2003. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative homes in Macclesfield with an extended lease were worth £227,800. The average ground rent payable was £45 billed every twelve months. The lease concluded in 2091. Taking into account 65 years remaining we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.

Macclesfield case:

In 2014 we were phoned by Ms Isabelle Kelly who, having took over the lease of a garden apartment in Macclesfield in April 2002. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Macclesfield with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 billed yearly. The lease expired in 2102. Taking into account 76 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.