The nearer a domestic lease in Middlewich nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Middlewich will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Middlewich with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| 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. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Two years ago Oscar, started to get near to the 80-year mark with the lease on his first floor flat in Middlewich. Having purchased his flat 18 years ago, the unexpired term was of no significance. Luckily, he noticed he needed to take action soon on Extending the lease. Oscar arranged for a lease extension at the eleventh hour in April. Oscar and the landlord eventually agreed on the final figure of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,000.
Dr Katherine Davies completed a one bedroom flat in Middlewich in August 2002. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Middlewich with a long lease were worth £280,000. The average amount of ground rent was £55 collected yearly. The lease concluded on 14 February 2104. Taking into account 78 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Mr and Mrs. G Wood owned a newly refurbished apartment in Middlewich in May 2006. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative properties in Middlewich with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 billed quarterly. The lease concluded in 2084. Given that there were 58 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.