Why you should start your Irlam lease extension

Main reasons to commence your Irlam lease extension today:

A Irlam lease depreciates with the years remaining on the lease.

Irlam leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Irlam residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Irlam you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold residencies in Irlam with more than 100 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not loan monies on a short lease

Mortgage lenders have specific criteria when loaning funds secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term slips beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as acceptable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to remortgage your Irlam home.

Get in touch with one of our Irlam lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Irlam,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Irlam valuers.

Irlam Lease Extension Example Cases:

Edward, Irlam, Greater Manchester

During the course of the last few months Edward, came precariously near to the eighty-year threshold with the lease on his first floor flat in Irlam. In buying his home two decades ago, the lease term was of little interest. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Edward was able to extend his lease just in the nick of time in September. Edward and the freeholder via the management company ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the premium would have become more exhorbitant by at least £1,150.

Irlam case:

Mr E Girard was assigned a lease of a one bedroom flat in Irlam in February 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative premises in Irlam with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded in 2098. Taking into account 72 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.

Irlam case:

In 2010 we were e-mailed by Mr and Mrs. W Laurent who, having bought a one bedroom flat in Irlam in April 2004. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical premises in Irlam with an extended lease were in the region of £256,600. The mid-range ground rent payable was £60 collected annually. The lease ran out on 21 January 2078. Given that there were 52 years unexpired we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus fees.