It’s an underpublicised certainty that a Middlewich residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Middlewich property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Middlewich will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Middlewich with over one hundred years unexpired on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Middlewich leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Callum was the the leasehold proprietor of a conversion flat in Middlewich on the market with a lease of a little over 59 years outstanding. Callum informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Last month we were approach by Mr and Mrs. P Ramírez , who bought a first floor flat in Middlewich in September 2003. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Middlewich with an extended lease were valued around £246,800. The average amount of ground rent was £60 billed yearly. The lease elapsed on 20 July 2075. Considering the 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of expenses.
In 2013 we were phoned by Mr and Mrs. E Ward who, having completed a first floor apartment in Middlewich in September 2008. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Middlewich with 100 year plus lease were valued around £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2086. Considering the 61 years remaining we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.