Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Alderley Edge. Inevitably, the length of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Alderley Edge have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due attention before delaying your Alderley Edge lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you increased control over the value of your Alderley Edge leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her ground floor flat in Alderley Edge, Grace initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction was concluded in March 2011. The landlord’s costs were negotiated to about 600 GBP.
Last Autumn we were called by Mr and Mrs. U Lambert , who took over the lease of a ground floor flat in Alderley Edge in September 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Alderley Edge with an extended lease were in the region of £237,600. The average amount of ground rent was £45 billed quarterly. The lease concluded in 2093. Given that there were 67 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus costs.
Last year we were contacted by Mr Muhammad Smith , who completed a garden flat in Alderley Edge in August 1996. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Alderley Edge with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 billed yearly. The lease came to a finish in 2104. Taking into account 78 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.