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 eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised prior to the eighty year threshold. Leasehold Reform legislation entitles Macclesfield qualifying lessees to obtain a lease extension of 90 years in addition to 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 amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Macclesfield with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Leeds Building Society | |
| TSB |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Samuel owned a studio apartment in Macclesfield on the market with a lease of fraction over 61 years left. Samuel on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. E Bailey who, having completed a basement apartment in Macclesfield in July 1995. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Macclesfield with a long lease were worth £183,600. The mid-range ground rent payable was £65 billed monthly. The lease end date was on 23 July 2083. Given that there were 57 years as a residual term we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.
Dr Abigail Watson bought a basement apartment in Macclesfield in March 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable homes in Macclesfield with a long lease were worth £245,000. The average amount of ground rent was £50 collected monthly. The lease end date was in 2094. Considering the 68 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.