It’s an underpublicised certainty that a Middlewich residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Middlewich property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Middlewich will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Middlewich with over one hundred years outstanding 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 upside in purchasing the reversionary interest 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Middlewich can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Middlewich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her two bedroom apartment in Middlewich, Amelia commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension was concluded in October 2010. The landlord’s fees were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. O Rogers , who was assigned a lease of a basement apartment in Middlewich in January 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Middlewich with an extended lease were worth £218,000. The mid-range ground rent payable was £45 collected monthly. The lease end date was on 28 February 2088. Taking into account 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.
Last year we were contacted by Dr Jamie Clark , who acquired a purpose-built flat in Middlewich in April 2012. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative homes in Middlewich with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease terminated on 4 May 2099. Considering the 74 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.