The nearer a residential lease in Urmston nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Urmston will qualify for this right; that being said a conveyancer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Urmston,the lease extension lawyers 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.
Half a year ago Aiden, started to get close to the 80-year threshold with the lease on his leasehold apartment in Urmston. In buying his property two decades ago, the length of the lease was of little bearing. Thankfully, he recognised he needed to take action soon on a lease extension. Aiden arranged for a lease extension just in the nick of time last June. Aiden and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If the lease had fallen to less than eighty years, the amount would have escalated by at least £1,100.
Mr and Mrs. Y Green acquired a one bedroom apartment in Urmston in May 2003. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar properties in Urmston with a long lease were valued about £233,200. The mid-range ground rent payable was £60 billed per annum. The lease ended on 7 January 2087. Taking into account 61 years remaining we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of legals.
Last Christmas we were e-mailed by Mrs Francesca Parker , who moved into a one bedroom flat in Urmston in November 2004. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Urmston with an extended lease were worth £166,800. The average amount of ground rent was £50 invoiced yearly. The lease lapsed in 2076. Having 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including fees.