When it comes to domestic leasehold property in Urmston, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems 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 increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Urmston with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years left, under the current statute the freeholder can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Urmston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Urmston valuers.
Lewis owned a conversion apartment in Urmston on the market with a lease of just over 59 years left. Lewis informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Summer we were phoned by Mr C Evans , who owned a newly refurbished apartment in Urmston in January 1998. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable residencies in Urmston with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 billed annually. The lease lapsed in 2083. Taking into account 57 years remaining we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
Dr Nicole Wilson was assigned a lease of a purpose-built flat in Urmston in June 1998. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar premises in Urmston with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 25 September 2103. Taking into account 77 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.