Northwich leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Northwich tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Northwich you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Northwich flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Northwich with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Northwich,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Northwich valuers.
Samuel owned a conversion flat in Northwich being sold with a lease of just over sixty years outstanding. Samuel on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Samuel to invoke his statutory right. Samuel procured expert advice and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. H Taylor moved into a studio flat in Northwich in October 2007. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Identical homes in Northwich with an extended lease were worth £200,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed in 2103. Taking into account 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
Last September we were contacted by Mr Kyle Clark , who owned a one bedroom apartment in Northwich in June 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Northwich with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 billed annually. The lease end date was on 22 September 2092. Having 66 years outstanding we approximated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including professional charges.