With a residential leasehold premises in Urmston, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years left. Anyone in Urmston with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years left, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Urmston with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Urmston,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Urmston valuers.
Andrew owned a high value apartment in Urmston on the market with a lease of just over 61 years outstanding. Andrew on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Last Autumn we were approach by Dr U Dupont , who took over the lease of a first floor apartment in Urmston in June 2000. The question was if we could approximate the price could be for a ninety year lease extension. Similar properties in Urmston with an extended lease were in the region of £250,400. The average ground rent payable was £65 billed yearly. The lease finished in 2090. Given that there were 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.
In 2011 we were e-mailed by Mr and Mrs. C Campbell who, having purchased a purpose-built flat in Urmston in March 2002. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative residencies in Urmston with a long lease were worth £184,000. The average ground rent payable was £55 billed per annum. The lease finished on 13 September 2079. Taking into account 53 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.