Urmston residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Urmston with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Urmston,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Urmston valuers.
Two years ago Aiden, came perilously near to the eighty-year mark with the lease on his first floor flat in Urmston. Having purchased his flat 18 years previously, the unexpired term was of no relevance. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Aiden arranged for a lease extension just ahead of time in March. Aiden and the landlord subsequently agreed on an amount of £5,500 . If the lease had descended below 80 years, the figure would have gone up by a minimum £1,150.
In 2013 we were approached by Mr Tyler Wood who, having purchased a garden apartment in Urmston in October 2003. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar homes in Urmston with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed in 2085. Having 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of legals.
Ms Sian Jackson moved into a newly refurbished flat in Urmston in July 1997. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar flats in Urmston with 100 year plus lease were worth £210,000. The average ground rent payable was £50 billed annually. The lease ended on 10 November 2105. Having 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.