Why you should start your Alderley Edge lease extension
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Why you should commence your Alderley Edge lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/alderley-edge">Alderley Edge</a> leasehold property depreciates with the years remaining on the lease.
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For those whose Alderley Edge home is held on a long lease, our message is clear –
if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed.
The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
<h4>Alderley Edge property with a lease extension has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
<h4>Banks and Building Societies may decide not to issue a mortgage with a short lease</h4> The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This will be problematic as and when you wish to dispose of or refinance your flat as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your buyer will have to hold off for 2 years before they can initiate the legal procedures for a lease extension.
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<tr><th>Lender</th>
<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Chelsea Building Society</td>
<td> 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.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<h4>
Why use us for your lease extension in Alderley Edge? </h4>
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Lease extensions in Alderley Edge can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Alderley Edge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Alderley Edge Lease Extension Example Cases:
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<h5> Tyler, Alderley Edge, Cheshire</h5>
<p> In recent months Tyler, started to get close to the 80-year threshold with the lease on his one bedroom flat in Alderley Edge. Having bought his flat two decades ago, the lease term was of no importance. by good luck, he realised he needed to take steps soon on a lease extension. Tyler extended the lease just under the wire in August. Tyler and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had descended lower than 80 years, the figure would have become more exhorbitant by at least £1,075.
<h5>Alderley Edge case:</h5>
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In 2010 we were contacted by Dr Maisie Reed who, having was assigned a lease of a basement flat in Alderley Edge in October 1999. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparable flats in Alderley Edge with an extended lease were valued about £246,800. The average amount of ground rent was £60 collected every twelve months. The lease end date was on 22 July 2076. Considering the 50 years left we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
<h5>Alderley Edge case:</h5>
<p> Ms F Fournier owned a garden flat in Alderley Edge in March 2007. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative properties in Alderley Edge with 100 year plus lease were in the region of £203,200. The average amount of ground rent was £65 collected annually. The lease terminated in 2087. Having 61 years remaining we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of fees.
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