It’s an underpublicised truth that a Alderley Edge residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Alderley Edge property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Alderley Edge will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Royal Bank of Scotland |
The lawyers that we work with undertake Alderley Edge 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 recent months Nathaniel, came perilously near to the eighty-year mark with the lease on his ground floor apartment in Alderley Edge. Having bought his flat twenty years previously, the unexpired term was of no importance. by good luck, he became aware that he would soon be paying an escalated premium for Extending the lease. Nathaniel was able to extend his lease at the eleventh hour last August. Nathaniel and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had slipped below 80 years, the figure would have escalated by at least £1,150.
Mrs B Bonnet owned a garden apartment in Alderley Edge in May 2005. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar residencies in Alderley Edge with a long lease were worth £220,400. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded in 2090. Considering the 64 years left we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including professional charges.
Dr Danielle Nelson took over the lease of a one bedroom flat in Alderley Edge in April 1997. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Alderley Edge with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed annually. The lease elapsed on 25 October 2101. Having 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.