Middlewich leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Middlewich enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Middlewich you would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Middlewich with more than 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Middlewich can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge dealing with Middlewich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her studio apartment in Middlewich, Maisie started the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was concluded in November 2014. The landlord’s fees were restricted to under 600 pounds.
In 2014 we were contacted by Mr George Flores who, having bought a one bedroom flat in Middlewich in May 1996. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Identical homes in Middlewich with a long lease were valued around £265,000. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded in 2100. Considering the 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last year we were phoned by Mrs D Díaz , who moved into a one bedroom apartment in Middlewich in January 2001. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar residencies in Middlewich with a long lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired on 14 October 2080. Having 54 years left we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus expenses.