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 becomes more expensive. It is the case that most Timperley tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Timperley you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
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.
Trailing protracted negotiations with the freeholder of her basement apartment in Timperley, Naomi started the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was finalised in January 2014. The landlord’s fees were negotiated to under 700 pounds.
In 2010 we were contacted by Dr M Evans who, having moved into a studio apartment in Timperley in August 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative properties in Timperley with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 billed annually. The lease expired on 8 June 2078. Having 53 years remaining we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus expenses.
Mr and Mrs. S David bought a ground floor flat in Timperley in March 2005. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Timperley with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 invoiced yearly. The lease lapsed in 2098. Considering the 73 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.