The market value of a leasehold property in Northwich is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year threshold. Current legislation entitles Northwich qualifying lessees to an additional term of ninety years over and above the unexpired term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Northwich,the lease extension solicitors 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.
Zachary owned a 2 bedroom flat in Northwich on the market with a lease of a few days over fifty eight years left. Zachary informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Zachary to exercise his statutory right. Zachary procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Dr F Gómez moved into a one bedroom flat in Northwich in July 1996. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar properties in Northwich with a long lease were valued about £200,000. The average amount of ground rent was £50 billed yearly. The lease elapsed on 21 June 2104. Taking into account 78 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2010 we were approached by Mr and Mrs. W Wright who, having completed a purpose-built apartment in Northwich in March 2009. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Similar premises in Northwich with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 billed yearly. The lease expired on 10 August 2093. Having 67 years outstanding we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of costs.