Main reasons to commence your Alderley Edge lease extension

Top reasons for lease extension now:

Increase your lease and increase your Alderley Edge property value

The only way is down when it comes to Alderley Edge lease terms. Alderley Edge flats that have a residual term lower than 80 years will de-escalate in value even faster, and the cost to extend your lease will go up.

An extended lease is almost the same value as a freehold

Leasehold premises in Alderley Edge with over one hundred years remaining on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to lend on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Alderley Edge lease extensions?

Irrespective of whether you are a tenant or a landlord in Alderley Edge,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alderley Edge valuers.

Alderley Edge Lease Extension Example Cases:

Jennifer, Alderley Edge, Cheshire,

After lengthy discussions with the freeholder of her ground floor flat in Alderley Edge, Jennifer commenced the lease extension process as the 80 year mark was fast coming. The legal work was finalised in October 2012. The landlord’s fees were negotiated to slightly above 600 pounds.

Alderley Edge case:

Dr Nathan Morris moved into a purpose-built flat in Alderley Edge in June 2005. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical residencies in Alderley Edge with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2086. Given that there were 60 years left we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus fees.

Alderley Edge case:

Last Winter we were e-mailed by Mr and Mrs. N Parker , who took over the lease of a one bedroom apartment in Alderley Edge in August 2010. The question was if we could approximate the price could be for a ninety year lease extension. Identical properties in Alderley Edge with 100 year plus lease were valued about £255,000. The average ground rent payable was £50 billed yearly. The lease lapsed in 2097. Given that there were 71 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.