Northwich leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Northwich will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Northwich leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted discussions with the landlord of her first floor flat in Northwich, Alexandra initiated the lease extension process as the eighty year threshold was quickly nearing. The legal work was finalised in September 2005. The freeholder’s fees were restricted to less than 650 GBP.
Mr Riley González acquired a one bedroom flat in Northwich in July 2008. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar premises in Northwich with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished on 1 August 2082. Taking into account 59 years left we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 not including legals.
In 2009 we were contacted by Dr Isaac Morel who, having took over the lease of a ground floor flat in Northwich in January 2005. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable properties in Northwich with a long lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease termination date was on 13 September 2102. Given that there were 79 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.