Alderley Edge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Alderley Edge residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Alderley Edge you should check if your lease has between seventy and 90 years remaining. There are good reasons why a Alderley Edge leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold premises in Alderley Edge with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Alderley Edge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alderley Edge valuers.
Off the back of lengthy discussions with the landlord of her garden apartment in Alderley Edge, Robyn commenced the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in May 2013. The landlord’s costs were kept to an absolute minimum.
In 2011 we were e-mailed by Mr G Edwards who, having purchased a first floor apartment in Alderley Edge in November 2007. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical premises in Alderley Edge with 100 year plus lease were valued around £225,400. The mid-range ground rent payable was £45 billed monthly. The lease expired in 2089. Given that there were 64 years left we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 plus expenses.
In 2009 we were e-mailed by Dr Benjamin Cook who, having acquired a basement apartment in Alderley Edge in August 2000. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar premises in Alderley Edge with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 billed annually. The lease ended in 2100. Having 75 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.