With a residential leasehold property in Northwich, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Northwich with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years left, under the current legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder 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 in-depth market knowledge and the close ties they enjoy with Northwich valuers.
Trailing lengthy correspondence with the freeholder of her two bedroom flat in Northwich, Ellie commenced the lease extension process as the eighty year mark was rapidly coming. The legal work completed in November 2009. The freeholder’s charges were negotiated to slightly above 450 GBP.
In 2010 we were phoned by Dr K André who, having bought a first floor flat in Northwich in March 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Northwich with a long lease were valued about £210,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out in 2105. Having 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Mr Jason Morris was assigned a lease of a one bedroom apartment in Northwich in September 2001. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Northwich with 100 year plus lease were worth £275,000. The average ground rent payable was £45 collected annually. The lease expired in 2094. Having 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.