With a domestic leasehold premises in Northwich, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Residents in Northwich with a lease approaching 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years left, under the current legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Northwich with in excess of 100 years left 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 premises. In such circumstances 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Northwich can be a difficult process. We recommend you obtain guidance from a conveyancer 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.
Following unsuccessful negotiations with the landlord of her first floor flat in Northwich, Melissa commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction completed in April 2012. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were called by Mr and Mrs. C Miller who, having was assigned a lease of a newly refurbished apartment in Northwich in May 1999. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative homes in Northwich with an extended lease were valued about £267,600. The average ground rent payable was £65 collected quarterly. The lease finished in 2092. Having 67 years remaining we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 plus fees.
In 2013 we were e-mailed by Ms H Roux who, having acquired a one bedroom flat in Northwich in June 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Northwich with 100 year plus lease were worth £201,200. The average ground rent payable was £55 invoiced monthly. The lease ran out in 2081. Considering the 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.