Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Wigan. Clearly, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Wigan have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before putting off your Wigan lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in Wigan with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wigan can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Wigan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Owen, started to get close to the eighty-year mark with the lease on his basement apartment in Wigan. Having purchased his flat 18 years ago, the lease term was of no relevance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Owen extended the lease at the eleventh hour in August. Owen and the landlord subsequently agreed on a premium of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £1,150.
Last Summer we were contacted by Mr U Baker , who completed a basement flat in Wigan in August 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Wigan with an extended lease were worth £186,000. The average amount of ground rent was £65 invoiced monthly. The lease ran out in 2084. Considering the 58 years outstanding we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 plus professional charges.
Last April we were phoned by Dr Leon Patel , who purchased a ground floor flat in Wigan in July 2000. We are asked if we could estimate the price could be to prolong the lease by 90 years. Identical premises in Wigan with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease ran out on 16 July 2095. Considering the 69 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.