With a long leasehold property in Northwich, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Northwich with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has under 80 years left, under the relevant Act the landlord can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Northwich with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Northwich can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Northwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy discussions with the freeholder of her basement flat in Northwich, Caitlin initiated the lease extension process as the eighty year threshold was rapidly nearing. The legal work completed in November 2007. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. H François , who bought a garden apartment in Northwich in November 1997. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative residencies in Northwich with 100 year plus lease were in the region of £184,000. The average ground rent payable was £55 invoiced yearly. The lease expired on 3 August 2079. Having 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.
In 2011 we were called by Ms Hollie Brown who, having owned a basement apartment in Northwich in September 2006. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Northwich with an extended lease were valued about £290,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed in 2099. Considering the 73 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.