Middlewich leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Flat owners in Middlewich will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 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 property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Middlewich,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Middlewich valuers.
Daniel owned a high value apartment in Middlewich on the market with a lease of a few days over 59 years left. Daniel on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Last Spring we were approach by Mr and Mrs. I Petit , who purchased a studio flat in Middlewich in March 2004. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparable homes in Middlewich with a long lease were worth £225,400. The average amount of ground rent was £45 billed monthly. The lease finished in 2090. Taking into account 64 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus professional charges.
Mr and Mrs. H Michel took over the lease of a first floor flat in Middlewich in March 1998. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar properties in Middlewich with a long lease were worth £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease ran out in 2101. Given that there were 75 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.