When it comes to residential leasehold property in Tyldesley, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Residents in Tyldesley with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years outstanding, under the current legislation the landlord can calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Tyldesley can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Tyldesley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jake, started to get close to the 80-year mark with the lease on his leasehold apartment in Tyldesley. Having bought his home twenty years previously, the unexpired term was of little bearing. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Jake was able to extend his lease just under the wire last April. Jake and the landlord ultimately settled on a premium of £5,000 . If the lease had fallen to less than eighty years, the premium would have gone up by at least £1,150.
Mr N Johnson bought a one bedroom apartment in Tyldesley in May 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Tyldesley with a long lease were valued around £179,200. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2075. Taking into account 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus legals.
In 2013 we were called by Ms A Scott who, having purchased a purpose-built flat in Tyldesley in May 2003. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Comparative premises in Tyldesley with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 11 March 2095. Given that there were 71 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.