Wigan leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Wigan tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Wigan you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
The lawyers that we work with undertake Wigan 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.
Ryan owned a high value flat in Wigan being sold with a lease of a little over 72 years unexpired. Ryan informally spoke with his landlord a well known London-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 new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2013 we were e-mailed by Ms Amber Simon who, having took over the lease of a garden apartment in Wigan in October 1996. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Wigan with a long lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expired in 2098. Considering the 72 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2009 we were contacted by Dr Samuel Williams who, having took over the lease of a ground floor apartment in Wigan in April 2008. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Identical properties in Wigan with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 billed quarterly. The lease elapsed in 2078. Given that there were 52 years remaining we calculated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 not including legals.