With a domestic leasehold premises in Congleton, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Residents in Congleton with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Congleton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Congleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the freeholder of her one bedroom flat in Congleton, Jade started the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in June 2011. The freeholder’s fees were negotiated to slightly above 600 pounds.
Mrs Alice Fournier moved into a one bedroom apartment in Congleton in November 2008. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in Congleton with 100 year plus lease were in the region of £227,800. The average amount of ground rent was £45 collected per annum. The lease concluded on 3 September 2089. Considering the 65 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
Dr L Flores owned a first floor apartment in Congleton in March 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Congleton with a long lease were valued about £275,000. The average amount of ground rent was £55 billed every twelve months. The lease finished in 2100. Taking into account 76 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.