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. Even though this may appear like a long period of time, you should 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 particularly once there are less than eighty years left. Residents in Northwich with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has fewer than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Two years ago Seth, started to get near to the 80-year threshold with the lease on his purpose- built flat in Northwich. In buying his property 18 years previously, the unexpired term was of minimal importance. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Seth extended the lease just ahead of time last May. Seth and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £1,025.
Mr and Mrs. H Ramírez bought a garden flat in Northwich in January 2011. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Northwich with a long lease were worth £252,800. The mid-range amount of ground rent was £65 billed annually. The lease lapsed in 2091. Taking into account 65 years left we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.
Last July we were e-mailed by Dr R Rogers , who purchased a basement flat in Northwich in October 2004. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Identical residencies in Northwich with an extended lease were in the region of £191,400. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 10 November 2080. Having 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of expenses.