The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Northwich have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Northwich lease extension. Putting off the costs today simply escalates the amount you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors that we work with undertake Northwich 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 lawyer we work with provide it.
14 months ago Elijah, came very close to the 80-year threshold with the lease on his studio flat in Northwich. Having purchased his property 18 years ago, the unexpired term was of little concern. Fortunately, he realised he would imminently be paying an escalated premium for Extending the lease. Elijah extended the lease just under the wire last January. Elijah and the freeholder via the management company subsequently agreed on a premium of £6,000 . If he not met the deadline, the figure would have escalated by at least £1,100.
Ms G Lee acquired a purpose-built apartment in Northwich in August 1997. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical residencies in Northwich with an extended lease were worth £171,800. The average amount of ground rent was £55 invoiced annually. The lease ran out on 13 August 2075. Considering the 50 years remaining we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
Dr Samantha Mitchell moved into a first floor apartment in Northwich in August 2011. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable flats in Northwich with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease concluded on 21 August 2096. Considering the 71 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.