Timperley leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Timperley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Timperley with over one hundred years unexpired 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Timperley leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Freddie was the the leasehold owner of a studio apartment in Timperley being sold with a lease of a little over 59 years unexpired. Freddie on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. A Díaz owned a one bedroom apartment in Timperley in April 1999. The question was if we could approximate the price would be to extend the lease by 90 years. Similar properties in Timperley with an extended lease were in the region of £252,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 18 February 2091. Given that there were 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus fees.
Mr and Mrs. N Scott took over the lease of a newly refurbished flat in Timperley in April 2003. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Timperley with a long lease were valued around £191,400. The mid-range ground rent payable was £55 collected per annum. The lease expired on 7 January 2080. Having 54 years as a residual term we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus fees.