Unfortunately that a Wigan residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Wigan property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. Most flat owners in Wigan will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
In 2014 Hunter, started to get near to the eighty-year threshold with the lease on his studio apartment in Wigan. In buying his flat two decades ago, the lease term was of little bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Hunter was able to extend his lease just under the wire in August. Hunter and the freeholder ultimately settled on sum of £5,500 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £850.
Mr and Mrs. F Harris was assigned a lease of a ground floor flat in Wigan in September 2002. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar homes in Wigan with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 7 July 2103. Taking into account 77 years outstanding we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.
Last August we were called by Mr and Mrs. J Khan , who acquired a one bedroom apartment in Wigan in August 2002. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative homes in Wigan with an extended lease were valued about £183,600. The average amount of ground rent was £65 collected per annum. The lease expired on 24 March 2083. Having 57 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.