Main reasons to start your Northwich lease extension

Main reasons to commence your Northwich lease extension today:

Increase your lease and increase your Northwich property value

The market value of Northwich leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions will not lend with a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Northwich lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Northwich,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Northwich valuers.

Northwich Lease Extension Case Studies:

James, Northwich, Cheshire,

James was the the leasehold proprietor of a studio apartment in Northwich being marketed with a lease of just over 72 years left. James on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.

Northwich case:

Last Christmas we were contacted by Ms R Phillips , who moved into a garden flat in Northwich in April 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Northwich with an extended lease were valued about £267,600. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2093. Taking into account 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus expenses.

Northwich case:

Dr K Allen bought a studio apartment in Northwich in October 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Northwich with a long lease were valued around £201,200. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed in 2082. Having 56 years unexpired we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.