Timperley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Timperley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Timperley you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure 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 lawyer we work with provide it.
16 months ago Samuel, came dangerously near to the eighty-year threshold with the lease on his ground floor apartment in Timperley. Having bought his home two decades ago, the unexpired term was of no concern. by good luck, he became aware that he needed to take steps soon on Extending the lease. Samuel was able to extend his lease just ahead of time last May. Samuel and the freeholder ultimately settled on sum of £5,000 . If he not met the deadline, the amount would have escalated by at least £1,025.
Mr and Mrs. P Collins moved into a purpose-built apartment in Timperley in August 2011. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Similar properties in Timperley with a long lease were valued about £270,000. The mid-range ground rent payable was £65 billed yearly. The lease finished on 28 July 2093. Given that there were 68 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2012 we were contacted by Mrs Danielle Harris who, having owned a ground floor flat in Timperley in August 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Timperley with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 billed every twelve months. The lease expiry date was on 1 November 2082. Having 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.