Congleton leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Congleton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancers that we work with handle Congleton 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 lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her two bedroom apartment in Congleton, Alice commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension was finalised in November 2013. The landlord’s costs were kept to an absolute minimum.
Last Summer we were approach by Mr and Mrs. T Phillips , who completed a one bedroom flat in Congleton in March 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Congleton with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected monthly. The lease expired in 2098. Considering the 73 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Dr W Bertrand purchased a ground floor flat in Congleton in March 1995. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Congleton with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected monthly. The lease expired in 2078. Given that there were 53 years remaining we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of fees.