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 the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Middlewich residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Middlewich you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent 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 in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
Engaging our service gives you increased control over the value of your Middlewich leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her first floor apartment in Middlewich, Hannah commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work was concluded in September 2008. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mrs Mollie François who, having bought a ground floor apartment in Middlewich in February 2008. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar flats in Middlewich with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 11 March 2103. Given that there were 78 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.
Mrs Emily Rogers purchased a studio apartment in Middlewich in May 2009. The question was if we could estimate the price could be for a 90 year lease extension. Comparable premises in Middlewich with an extended lease were in the region of £191,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease termination date was in 2083. Taking into account 58 years outstanding we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.