With a long leasehold property in Irlam, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Irlam with a lease approaching 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the relevant Act the landlord can calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Irlam with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with handle Irlam 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of lengthy correspondence with the freeholder of her one bedroom flat in Irlam, Paige initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction was concluded in April 2013. The freeholder’s costs were restricted to less than 500 GBP.
Mrs Naomi Hall took over the lease of a purpose-built flat in Irlam in October 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Irlam with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish on 22 January 2099. Having 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. C Edwards purchased a recently refurbished apartment in Irlam in November 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Similar residencies in Irlam with a long lease were valued about £264,000. The average amount of ground rent was £60 collected yearly. The lease came to a finish in 2079. Having 53 years remaining we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including expenses.