When it comes to long leasehold premises in Irlam, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Irlam with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has fewer than 80 years left, under the current Act the landlord is entitled to calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Irlam with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| TSB | |
| Yorkshire Building Society |
The lawyers that we work with undertake 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 lawyer we work with provide it.
Tyler owned a 2 bedroom apartment in Irlam being sold with a lease of a little over sixty years left. Tyler on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Dr Eliot Murphy , who owned a basement flat in Irlam in September 2001. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical flats in Irlam with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease termination date was on 17 January 2102. Considering the 76 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Mr and Mrs. E Morel purchased a garden flat in Irlam in August 2010. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar premises in Irlam with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected annually. The lease terminated on 7 November 2082. Given that there were 56 years left we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of expenses.