Middlewich leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Middlewich will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Middlewich with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Retaining our service gives you better control over the value of your Middlewich leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Eliot, started to get near to the 80-year mark with the lease on his ground floor flat in Middlewich. Having purchased his home two decades ago, the lease term was of minimal relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Eliot extended the lease at the eleventh hour in May. Eliot and the freeholder via the managing agents subsequently settled on sum of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £1,050.
Last Christmas we were phoned by Mrs Zoe Wood , who bought a first floor flat in Middlewich in August 1996. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Middlewich with a long lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished on 22 April 2094. Considering the 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Mr Gabriel Cooper owned a first floor apartment in Middlewich in September 2010. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Middlewich with 100 year plus lease were valued about £290,000. The average amount of ground rent was £60 billed every twelve months. The lease finished on 11 June 2105. Given that there were 80 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.