It’s a harsh certainty that a Irlam residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Irlam property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Irlam will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society |
Lease extensions in Irlam can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 dealing with Irlam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Elijah, started to get near to the 80-year threshold with the lease on his first floor apartment in Irlam. Having bought his property two decades ago, the length of the lease was of no bearing. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Elijah extended the lease just under the wire last September. Elijah and the freeholder subsequently settled on sum of £5,000 . If he not met the deadline, the amount would have gone up by at least £1,075.
In 2014 we were contacted by Dr Lucas Morgan who, having moved into a one bedroom apartment in Irlam in June 2011. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical properties in Irlam with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed in 2106. Having 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2011 we were called by Dr Amy Díaz who, having purchased a first floor flat in Irlam in May 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Irlam with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed in 2086. Considering the 60 years outstanding we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of legals.