Skelmersdale leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Skelmersdale will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during 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 ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Skelmersdale leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the landlord of her ground floor apartment in Skelmersdale, Paige commenced the lease extension process as the 80 year threshold was quickly coming. The lease extension was finalised in September 2015. The freeholder’s costs were restricted to a tad over 450 pounds.
Mr and Mrs. U Roux was assigned a lease of a basement flat in Skelmersdale in July 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical homes in Skelmersdale with an extended lease were worth £275,000. The average ground rent payable was £55 billed every twelve months. The lease elapsed in 2101. Considering the 76 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Christmas we were phoned by Mr B Lefebvre , who completed a first floor apartment in Skelmersdale in February 1998. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable homes in Skelmersdale with a long lease were valued around £176,200. The average amount of ground rent was £65 collected monthly. The lease terminated on 26 April 2081. Having 56 years left we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus professional charges.