The market value of a leasehold property in Northwich depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be finalised well before the eighty year cut off point. Leasehold Reform legislation enables Northwich qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Northwich,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Northwich valuers.
After lengthy correspondence with the landlord of her garden apartment in Northwich, Millie started the lease extension process as the eighty year threshold was fast advancing. The transaction was finalised in March 2015. The landlord’s fees were negotiated to slightly above four hundred pounds.
In 2010 we were contacted by Mr and Mrs. G Girard who, having owned a basement flat in Northwich in April 2011. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Northwich with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected quarterly. The lease ended in 2099. Given that there were 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
In 2010 we were contacted by Mrs K Leroy who, having was assigned a lease of a ground floor apartment in Northwich in March 1997. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Northwich with 100 year plus lease were valued about £235,600. The average ground rent payable was £60 billed monthly. The lease concluded in 2088. Given that there were 62 years remaining we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.