Unfortunately that a Northwich residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Northwich property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Northwich will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Northwich leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her leasehold apartment in Northwich, Kayleigh initiated the lease extension process as the 80 year threshold was quickly nearing. The legal work was concluded in May 2008. The freeholder’s charges were kept to an absolute minimum.
Last October we were called by Mr and Mrs. M Reed , who acquired a garden flat in Northwich in November 2004. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical homes in Northwich with 100 year plus lease were in the region of £235,600. The average ground rent payable was £60 invoiced every twelve months. The lease ran out on 14 August 2088. Taking into account 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
Last Autumn we were approach by Dr N Lewis , who was assigned a lease of a one bedroom flat in Northwich in April 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Northwich with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 2 April 2077. Taking into account 51 years outstanding we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.