Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Urmston. Inevitably, the term of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Urmston have the legal entitlement to extend the lease for a further ninety years in accordance with statute. You should give careful attention before delaying your Urmston lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies in Urmston with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
The conveyancing solicitors that we work with procure Urmston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
David owned a 2 bedroom flat in Urmston on the market with a lease of just over fifty eight years outstanding. David informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were David to exercise his statutory right. David obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
Dr F Petit took over the lease of a one bedroom apartment in Urmston in June 2000. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Urmston with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease expired in 2104. Considering the 79 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
In 2009 we were e-mailed by Mr and Mrs. Y Williams who, having acquired a recently refurbished apartment in Urmston in May 1999. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable homes in Urmston with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 billed annually. The lease elapsed in 2093. Having 68 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.