Wigan leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Wigan will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Wigan with in excess of 100 years remaining 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 merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
16 months ago Arthur, started to get close to the 80-year mark with the lease on his one bedroom flat in Wigan. In buying his home 19 years previously, the lease term was of little concern. by good luck, he recognised he needed to take steps soon on a lease extension. Arthur extended the lease at the eleventh hour in March. Arthur and the freeholder subsequently settled on an amount of £5,500 . If the lease had slipped to less than 80 years, the figure would have increased by at least £950.
Last Winter we were contacted by Ms O Fournier , who acquired a newly refurbished apartment in Wigan in May 2012. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Wigan with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease finished on 28 March 2080. Given that there were 54 years outstanding we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.
Last Christmas we were phoned by Ms Jordan Gray , who was assigned a lease of a newly refurbished flat in Wigan in January 2012. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable flats in Wigan with 100 year plus lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed on 6 November 2091. Given that there were 65 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.