The only way is down when it comes to Middlewich lease terms. Middlewich properties that have a residual term fewer than 80 years will drop in value even faster, and the cost to extend your lease will go up.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Retaining our service gives you better control over the value of your Middlewich leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum was the the leasehold proprietor of a conversion flat in Middlewich on the market with a lease of a little over sixty years outstanding. Callum on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Summer we were called by Mrs Charlotte Rivera , who acquired a recently refurbished flat in Middlewich in August 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar premises in Middlewich with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 invoiced annually. The lease finished in 2083. Considering the 57 years as a residual term we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
Mrs L Richardson completed a recently refurbished flat in Middlewich in March 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Middlewich with a long lease were worth £245,000. The mid-range ground rent payable was £50 invoiced annually. The lease termination date was on 1 November 2094. Having 68 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.