Macclesfield residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Macclesfield,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Macclesfield valuers.
James was the the leasehold proprietor of a conversion flat in Macclesfield being marketed with a lease of a little over 59 years outstanding. James on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. F Clark completed a garden flat in Macclesfield in May 2009. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Macclesfield with a long lease were worth £275,000. The average amount of ground rent was £55 billed per annum. The lease elapsed on 6 September 2102. Given that there were 76 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last Spring we were approach by Mr and Mrs. P Moore , who moved into a first floor apartment in Macclesfield in August 2011. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable premises in Macclesfield with an extended lease were valued about £176,200. The average ground rent payable was £65 invoiced annually. The lease ended in 2082. Given that there were 56 years left we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 plus fees.