Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Irlam. Inevitably, the period of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Irlam have the right to extend the lease for a further 90 years in accordance with legislation. Do give due consideration before delaying your Irlam lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Irlam with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Jamie was the the leasehold owner of a conversion apartment in Irlam on the market with a lease of just over 59 years remaining. Jamie informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and secured satisfactory resolution informally and sell the property.
Mr and Mrs. V Bernard acquired a ground floor flat in Irlam in February 1996. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative flats in Irlam with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2103. Considering the 78 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Last March we were approach by Ms Louise Patel , who completed a garden apartment in Irlam in June 2005. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative properties in Irlam with 100 year plus lease were worth £186,000. The average ground rent payable was £65 collected annually. The lease terminated in 2083. Considering the 58 years remaining we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus legals.