Northwich leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Flat owners in Northwich will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Northwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Logan was the the leasehold owner of a conversion flat in Northwich being marketed with a lease of just over 72 years unexpired. Logan informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Logan to exercise his statutory right. Logan obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2012 we were e-mailed by Dr Amber Leroy who, having owned a one bedroom flat in Northwich in April 2002. The question was if we could estimate the price could be to prolong the lease by ninety years. Similar homes in Northwich with 100 year plus lease were worth £260,200. The average ground rent payable was £65 collected per annum. The lease expired in 2092. Having 66 years remaining we approximated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus expenses.
In 2009 we were e-mailed by Mr I Harris who, having owned a studio flat in Northwich in November 2011. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Northwich with a long lease were worth £198,800. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 23 February 2081. Taking into account 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus fees.