The market value of a leasehold property in Macclesfield is impacted by how long the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised ahead of the eighty year threshold. Current legislation enables Macclesfield qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of ninety years. The intention 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.
Leasehold premises in Macclesfield with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Macclesfield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her studio apartment in Macclesfield, Chelsea initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The legal work was concluded in November 2015. The freeholder’s costs were restricted to approximately 450 pounds.
Ms F Turner was assigned a lease of a basement flat in Macclesfield in August 2010. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Similar residencies in Macclesfield with an extended lease were worth £225,400. The average ground rent payable was £45 billed quarterly. The lease end date was in 2090. Having 64 years remaining we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus legals.
In 2010 we were called by Mr and Mrs. L Roux who, having took over the lease of a garden flat in Macclesfield in June 1995. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable residencies in Macclesfield with an extended lease were valued around £270,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out in 2101. Given that there were 75 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.