It’s an underpublicised truth that a Middlewich residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Middlewich property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Middlewich will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. 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 conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Middlewich can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Middlewich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Mason, came dangerously near to the 80-year mark with the lease on his garden flat in Middlewich. In buying his flat two decades ago, the unexpired term was of no importance. Fortunately, he realised he needed to take steps soon on a lease extension. Mason arranged for a lease extension just in the nick of time in March. Mason and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If the lease had slid lower than 80 years, the price would have escalated by a minimum £950.
Mr Leo Walker acquired a first floor apartment in Middlewich in September 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical premises in Middlewich with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 billed monthly. The lease concluded on 10 May 2100. Taking into account 75 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
Last February we were phoned by Mrs Poppy Bennett , who moved into a purpose-built flat in Middlewich in September 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Middlewich with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 collected every twelve months. The lease finished in 2080. Considering the 55 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.