Why you should start your Northwich lease extension

Main reasons to commence your Northwich lease extension today:

Increase your lease and increase your Northwich property value

With a residential leasehold premises in Northwich, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years left. Anyone in Northwich with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has less than 80 years outstanding, under the current legislation the landlord is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

Northwich property with a lease extension is almost the same value as a freehold

Leasehold residencies in Northwich with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to finance a property on a short lease

Many banks and building societies will not grant a mortgage on a lease with under 70 years unexpired - although this varies from lender to lender. A purchaser will no doubt find it difficult to obtain a mortgage and this will result in your Northwich property becoming difficult to sell or to obtain finance on.

What makes us experts in Northwich lease extensions?

Retaining our service will provide you enhanced control over the value of your Northwich leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Northwich Lease Extension Case Summaries:

Catherine, Northwich, Cheshire,

Trailing protracted discussions with the freeholder of her garden apartment in Northwich, Catherine initiated the lease extension process as the eighty year mark was quickly coming. The legal work was finalised in June 2005. The freeholder’s fees were kept to an absolute minimum.

Northwich case:

Dr Blake Allen bought a one bedroom apartment in Northwich in November 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Northwich with a long lease were worth £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated on 13 November 2077. Having 51 years as a residual term we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.

Northwich case:

Dr Jonathan Peterson was assigned a lease of a first floor apartment in Northwich in September 1996. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative residencies in Northwich with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease terminated in 2097. Taking into account 71 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.