The re-sale value of a leasehold property in Macclesfield is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year cut off point. Current legislation enables Macclesfield qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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.
Following protracted negotiations with the freeholder of her garden apartment in Macclesfield, Sian commenced the lease extension process as the 80 year threshold was rapidly advancing. The transaction was finalised in June 2010. The landlord’s charges were restricted to less than 650 pounds.
Mr and Mrs. W Martin bought a studio apartment in Macclesfield in July 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Macclesfield with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced monthly. The lease ran out on 23 November 2080. Having 54 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
In 2012 we were phoned by Mrs Paige Evans who, having bought a one bedroom flat in Macclesfield in August 2010. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Macclesfield with an extended lease were valued about £227,800. The average amount of ground rent was £45 collected per annum. The lease end date was in 2091. Considering the 65 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.