Failsworth leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Failsworth will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you increased control over the value of your Failsworth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold proprietor of a conversion apartment in Failsworth on the market with a lease of fraction over 59 years unexpired. Luke on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
Dr Matthew Khan moved into a recently refurbished apartment in Failsworth in April 2001. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical homes in Failsworth with a long lease were in the region of £198,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out on 25 June 2085. Given that there were 59 years left we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.
Last Autumn we were e-mailed by Mrs B Bertrand , who purchased a one bedroom apartment in Failsworth in March 2005. The question was if we could estimate the premium could be for a ninety year lease extension. Comparative properties in Failsworth with a long lease were valued about £255,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2096. Given that there were 70 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.