Culcheth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Culcheth tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Culcheth you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Culcheth flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than 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 residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 procure Culcheth 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.
Subsequent to lengthy negotiations with the freeholder of her purpose-built apartment in Culcheth, Erin initiated the lease extension process as the eighty year threshold was quickly approaching. The transaction completed in April 2015. The freeholder’s charges were restricted to slightly above 700 pounds.
Mr and Mrs. N Johnson purchased a one bedroom flat in Culcheth in February 2003. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar flats in Culcheth with a long lease were in the region of £290,000. The average ground rent payable was £60 billed annually. The lease lapsed on 23 July 2106. Taking into account 80 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
In 2014 we were called by Ms N Baker who, having was assigned a lease of a purpose-built apartment in Culcheth in March 2012. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Culcheth with a long lease were valued about £200,800. The average amount of ground rent was £65 billed yearly. The lease ran out in 2086. Taking into account 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of legals.