Unfortunately 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 loss of value being disguised by increases in the Middlewich property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Most flat owners in Middlewich will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. 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 lawyer throughout the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you better control over the value of your Middlewich leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold proprietor of a conversion apartment in Middlewich on the market with a lease of fraction over 59 years outstanding. Henry informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Ms Daisy Baker moved into a one bedroom flat in Middlewich in November 2005. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical homes in Middlewich with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed on 8 May 2105. Having 79 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Last Christmas we were contacted by Dr Y Morris , who was assigned a lease of a first floor flat in Middlewich in June 1995. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar homes in Middlewich with a long lease were valued about £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease end date was in 2085. Given that there were 59 years unexpired we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.