For anyone whose Middlewich home is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you increased 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 conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a studio apartment in Middlewich on the market with a lease of a little over 72 years unexpired. Reuben informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Winter we were called by Dr O Scott , who owned a basement flat in Middlewich in November 2010. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Middlewich with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 billed annually. The lease expiry date was on 11 September 2086. Considering the 60 years left we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.
Mr and Mrs. C Mason took over the lease of a studio flat in Middlewich in October 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable residencies in Middlewich with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired in 2097. Considering the 71 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.