The closer a residential lease in Irlam nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Irlam will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service gives you better control over the value of your Irlam leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her one bedroom flat in Irlam, Melissa initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction was concluded in March 2008. The landlord’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Mrs R Morel who, having acquired a garden flat in Irlam in October 2012. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable properties in Irlam with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish in 2083. Given that there were 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.
Mr and Mrs. N Rivera bought a first floor flat in Irlam in March 2008. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable residencies in Irlam with a long lease were worth £245,000. The average ground rent payable was £50 collected per annum. The lease terminated in 2094. Having 68 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.