Irlam leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Irlam enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Irlam you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Engaging our service gives you increased control over the value of your Irlam leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Milo, came very near to the eighty-year threshold with the lease on his ground floor flat in Irlam. In buying his property 18 years ago, the length of the lease was of little bearing. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Milo was able to extend his lease just in the nick of time in March. Milo and the freeholder subsequently agreed on an amount of £5,000 . If the lease had dropped to less than 80 years, the amount would have become more exhorbitant by at least £1,150.
Last Summer we were phoned by Mr Jason Hall , who bought a first floor flat in Irlam in July 2005. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical premises in Irlam with 100 year plus lease were valued around £245,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed on 13 November 2094. Considering the 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last month we were called by Mrs F Mitchell , who purchased a purpose-built flat in Irlam in August 1999. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative residencies in Irlam with an extended lease were valued about £285,000. The average amount of ground rent was £55 billed monthly. The lease ran out on 16 November 2105. Considering the 79 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.