With a long leasehold property in Northwich, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Leasehold owners in Northwich with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure professional help from a lawyer and surveyor 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 procuring Northwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Kai, came seriously near to the 80-year mark with the lease on his ground floor flat in Northwich. Having purchased his property 18 years ago, the lease term was of no bearing. by good luck, he recognised he needed to take action soon on a lease extension. Kai extended the lease just under the wire in January. Kai and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,050.
Last Christmas we were contacted by Dr T Moore , who bought a studio flat in Northwich in June 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Similar homes in Northwich with an extended lease were in the region of £225,800. The average amount of ground rent was £60 collected every twelve months. The lease termination date was in 2085. Taking into account 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £25,700 and £29,600 exclusive of expenses.
Dr N Patel owned a newly refurbished flat in Northwich in January 2010. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical residencies in Northwich with a long lease were worth £210,000. The mid-range amount of ground rent was £50 billed monthly. The lease expiry date was on 9 January 2105. Given that there were 80 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.