Northwich leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Northwich will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Northwich leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ben, came critically close to the eighty-year threshold with the lease on his purpose- built flat in Northwich. In buying his home two decades ago, the lease term was of no relevance. Luckily, he noticed he needed to take action soon on Extending the lease. Ben was able to extend his lease at the eleventh hour in September. Ben and the landlord in the end settled on sum of £5,500 . If he not met the deadline, the figure would have become more costly by a minimum £950.
In 2011 we were approached by Mrs Freya Ramírez who, having took over the lease of a garden flat in Northwich in June 2011. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Northwich with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected per annum. The lease finished in 2094. Taking into account 70 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
Last Autumn we were approach by Mr and Mrs. U Lee , who bought a basement flat in Northwich in September 1999. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable residencies in Northwich with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected per annum. The lease ran out in 2083. Having 59 years outstanding we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including costs.