Main reasons to start your Middlewich lease extension

Top reasons for lease extension now:

A Middlewich leasehold property depreciates with the years remaining on the lease.

Middlewich leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Middlewich residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Middlewich you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Middlewich flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Middlewich with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not loan monies on a short lease

Lending institutions have set criteria when loaning monies charged on leasehold property. Some will simply refuse lend at all once the residual lease term falls below a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are wanting to refinance your Middlewich property.

Get in touch with one of our Middlewich lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with procure 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 conveyancer we work with provide it.

Middlewich Lease Extension Case Studies:

Aaron, Middlewich, Cheshire,

Aaron was the the leasehold owner of a studio flat in Middlewich being marketed with a lease of a few days over fifty eight years remaining. Aaron on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert advice and secured an acceptable deal without going to tribunal and sell the property.

Middlewich case:

In 2012 we were phoned by Mr and Mrs. I Stewart who, having acquired a ground floor flat in Middlewich in January 2005. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar homes in Middlewich with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease termination date was in 2085. Having 59 years left we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.

Middlewich case:

Last Christmas we were called by Dr S Moreau , who acquired a one bedroom apartment in Middlewich in April 2004. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar residencies in Middlewich with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded on 26 June 2096. Taking into account 70 years outstanding we calculated the premium to the landlord to extend the lease to be between £10,500 and £12,000 not including professional charges.