Middlewich leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Middlewich will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Middlewich with in excess of one hundred years outstanding on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Middlewich leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a studio flat in Middlewich being sold with a lease of a little over 59 years unexpired. Leo informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Last year we were phoned by Ms K Williams , who bought a first floor flat in Middlewich in March 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Middlewich with 100 year plus lease were worth £227,800. The average ground rent payable was £45 collected per annum. The lease came to a finish in 2090. Having 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Mr and Mrs. H Peterson acquired a basement flat in Middlewich in August 2005. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical premises in Middlewich with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish in 2101. Considering the 76 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.