Leigh leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Leigh will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you increased control over the value of your Leigh leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her ground floor apartment in Leigh, Leah commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction was finalised in July 2008. The landlord’s charges were restricted to about 600 GBP.
In 2009 we were e-mailed by Mrs D Ali who, having purchased a studio flat in Leigh in October 2007. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Leigh with an extended lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced monthly. The lease end date was on 1 August 2101. Having 76 years unexpired we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
In 2010 we were e-mailed by Mr and Mrs. C Davis who, having bought a ground floor apartment in Leigh in September 2005. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Leigh with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 collected every twelve months. The lease end date was on 14 September 2090. Given that there were 65 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including legals.