With a domestic leasehold premises in Middleton, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years left. Residents in Middleton with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below eighty years remaining, under the relevant statute the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Middleton with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Middleton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Middleton valuers.
In the wake of eight months of protracted negotiations with the landlord of her studio apartment in Middleton, Niamh started the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in November 2011. The freeholder’s fees were kept to an absolute minimum.
Last May we were contacted by Dr I Roberts , who bought a purpose-built flat in Middleton in June 2011. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Middleton with a long lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 1 April 2078. Considering the 52 years remaining we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of costs.
In 2010 we were phoned by Ms Rachel Morris who, having purchased a newly refurbished flat in Middleton in January 1999. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Identical homes in Middleton with an extended lease were valued around £218,000. The average ground rent payable was £45 invoiced quarterly. The lease lapsed in 2089. Having 63 years outstanding we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of expenses.