The market value of a leasehold property in Timperley depends on how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year mark. Statute enables Timperley qualifying lessees to an additional term of ninety years over and above the unexpired term, at a notional rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Timperley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Timperley valuers.
Hunter owned a 2 bedroom flat in Timperley being marketed with a lease of fraction over 72 years left. Hunter informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Mr and Mrs. U Khan moved into a studio apartment in Timperley in March 2006. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Timperley with 100 year plus lease were worth £201,200. The mid-range ground rent payable was £55 invoiced annually. The lease expiry date was on 3 November 2081. Given that there were 56 years remaining we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.
In 2009 we were phoned by Dr H Jones who, having moved into a purpose-built apartment in Timperley in April 2004. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical properties in Timperley with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease termination date was on 23 January 2101. Taking into account 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.