The market value of Irlam leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold residencies in Irlam with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Irlam,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Irlam valuers.
In recent months Hugo, came perilously near to the eighty-year mark with the lease on his leasehold apartment in Irlam. In buying his flat 18 years ago, the lease term was of no significance. Fortunately, he realised he needed to take action soon on a lease extension. Hugo extended the lease just under the wire in April. Hugo and the landlord in the end settled on sum of £6,000 . If he not met the deadline, the amount would have gone up by a minimum £900.
In 2014 we were phoned by Mr and Mrs. P Stewart who, having was assigned a lease of a purpose-built flat in Irlam in October 2011. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable flats in Irlam with an extended lease were worth £176,200. The average amount of ground rent was £65 invoiced per annum. The lease elapsed on 22 June 2081. Considering the 56 years unexpired we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.
Last July we were called by Mrs U Patel , who took over the lease of a ground floor flat in Irlam in February 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar flats in Irlam with a long lease were in the region of £242,600. The average ground rent payable was £45 collected annually. The lease lapsed on 21 January 2092. Having 67 years unexpired we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of costs.