The re-sale value of a leasehold property in Northwich is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year threshold. Leasehold Reform legislation enables Northwich qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Northwich with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a landlord in Northwich,the lease extension solicitors that we work with will always be happy 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.
Following protracted negotiations with the landlord of her garden apartment in Northwich, Hannah commenced the lease extension process as the eighty year mark was swiftly nearing. The legal work was concluded in May 2014. The landlord’s fees were restricted to about four hundred GBP.
In 2013 we were contacted by Dr L Mercier who, having was assigned a lease of a garden apartment in Northwich in July 2006. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative premises in Northwich with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 collected per annum. The lease lapsed in 2087. Taking into account 61 years outstanding we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of legals.
In 2013 we were e-mailed by Dr E Phillips who, having was assigned a lease of a ground floor flat in Northwich in October 1999. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar properties in Northwich with an extended lease were in the region of £166,800. The average amount of ground rent was £50 billed quarterly. The lease ran out in 2076. Given that there were 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of fees.