Wigan leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Wigan will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Wigan with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Wigan,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wigan valuers.
Last October Isaac, started to get near to the eighty-year threshold with the lease on his basement apartment in Wigan. In buying his home two decades ago, the length of the lease was of no relevance. by good luck, he recognised he would imminently be paying an inflated amount for a lease extension. Isaac arranged for a lease extension just under the wire last March. Isaac and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If he not met the deadline, the figure would have escalated by at least £900.
Last Winter we were contacted by Dr Amelia Rose , who owned a first floor flat in Wigan in June 1995. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical homes in Wigan with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease terminated on 20 March 2082. Taking into account 56 years remaining we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus costs.
Dr U Turner was assigned a lease of a purpose-built flat in Wigan in February 2005. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Wigan with a long lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 22 July 2093. Given that there were 67 years remaining we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.