Irlam leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have 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 to the property. Leasehold owners in Irlam will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Irlam with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| TSB | |
| Virgin |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Freddie was the the leasehold proprietor of a studio apartment in Irlam being sold with a lease of a little over 61 years remaining. Freddie on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last October we were phoned by Mrs Jessica Martin , who acquired a basement flat in Irlam in September 2003. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable flats in Irlam with an extended lease were worth £220,400. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 14 November 2090. Taking into account 64 years as a residual term we estimated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus costs.
Dr I Mercier moved into a garden flat in Irlam in May 2012. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar flats in Irlam with a long lease were worth £270,000. The average ground rent payable was £55 billed yearly. The lease lapsed in 2101. Taking into account 75 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.