There is no doubt about it a leasehold property in Timperley is a wasting asset as a result of the shortening lease. Where the residual term has, more than 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Many flat owners in Timperley will qualify for this right; nevertheless a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Timperley with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 lawyers that we work with handle Timperley 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.
During the course of the last few months Daniel, came critically close to the 80-year threshold with the lease on his one bedroom flat in Timperley. Having bought his home two decades ago, the length of the lease was of no interest. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Daniel arranged for a lease extension just under the wire in April. Daniel and the freeholder ultimately settled on sum of £6,000 . If the lease had descended below 80 years, the premium would have become more costly by a minimum £1,150.
Dr H Murphy moved into a basement apartment in Timperley in January 2002. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar properties in Timperley with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease expired on 16 October 2084. Taking into account 58 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.
In 2009 we were contacted by Mr W Ricardo who, having acquired a one bedroom flat in Timperley in November 1999. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical residencies in Timperley with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected monthly. The lease finished in 2104. Given that there were 78 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.