Middlewich leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Middlewich enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Middlewich you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Middlewich 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 conveyancing solicitor we work with provide it.
Last October Harry, came critically near to the eighty-year mark with the lease on his garden apartment in Middlewich. Having bought his property two decades ago, the unexpired term was of no bearing. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Harry extended the lease just under the wire last June. Harry and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he had missed the deadline, the figure would have become more costly by a minimum £1,050.
In 2013 we were e-mailed by Dr K Wright who, having owned a first floor flat in Middlewich in September 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Middlewich with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2082. Having 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.
In 2012 we were e-mailed by Dr W Bernard who, having moved into a one bedroom apartment in Middlewich in November 2005. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical flats in Middlewich with an extended lease were valued about £242,600. The average ground rent payable was £45 billed per annum. The lease concluded in 2093. Considering the 67 years remaining we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.