The market value of a leasehold property in Irlam is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be addressed in advance of the 80 year cut off point. Current legislation enables Irlam qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Irlam can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Irlam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold owner of a studio apartment in Irlam on the market with a lease of fraction over 59 years unexpired. Leon on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Leon to invoke his statutory right. Leon obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr U Murphy acquired a one bedroom flat in Irlam in July 2008. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Irlam with an extended lease were in the region of £203,200. The average amount of ground rent was £65 billed quarterly. The lease terminated in 2087. Considering the 61 years left we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of legals.
In 2014 we were e-mailed by Dr O Vincent who, having moved into a one bedroom flat in Irlam in April 1995. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Irlam with a long lease were valued around £260,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 27 September 2098. Given that there were 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.