Unfortunately that a Timperley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Timperley property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most flat owners in Timperley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society |
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 conveyancer we work with provide it.
Two years ago Edward, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Timperley. In buying his property two decades ago, the unexpired term was of no bearing. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Edward extended the lease just under the wire last August. Edward and the landlord subsequently agreed on an amount of £5,500 . If the lease had descended lower than eighty years, the price would have gone up by a minimum £1,125.
Dr W Baker owned a basement apartment in Timperley in June 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Identical flats in Timperley with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 billed yearly. The lease elapsed on 10 June 2093. Having 67 years unexpired we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.
Last year we were contacted by Mrs Chelsea Díaz , who owned a basement apartment in Timperley in February 1998. We are asked if we could estimate the price could be for a 90 year lease extension. Identical residencies in Timperley with an extended lease were in the region of £201,200. The average ground rent payable was £55 billed monthly. The lease came to a finish in 2082. Given that there were 56 years unexpired we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.