Unfortunately that a Macclesfield residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Macclesfield property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most flat owners in Macclesfield will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Macclesfield with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Virgin |
The conveyancers that we work with undertake 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.
In the wake of eight months of protracted correspondence with the freeholder of her one bedroom apartment in Macclesfield, Catherine started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was finalised in May 2013. The landlord’s charges were kept to an absolute minimum.
Last May we were called by Mr and Mrs. L Jackson , who bought a one bedroom flat in Macclesfield in September 2010. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable residencies in Macclesfield with 100 year plus lease were valued around £290,000. The average ground rent payable was £55 collected annually. The lease concluded on 2 October 2106. Having 80 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Mr and Mrs. G Watson was assigned a lease of a first floor flat in Macclesfield in July 1998. We are asked if we could approximate the price would be for a 90 year lease extension. Identical properties in Macclesfield with a long lease were worth £200,800. The average ground rent payable was £65 invoiced annually. The lease terminated in 2086. Having 60 years unexpired we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.