With a residential leasehold property in Failsworth, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Residents in Failsworth with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below eighty years outstanding, under the current legislation the landlord can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Failsworth with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful discussions with the freeholder of her purpose-built flat in Failsworth, Paige started the lease extension process as the 80 year threshold was fast coming. The transaction was concluded in January 2007. The landlord’s charges were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. V Hill , who acquired a purpose-built flat in Failsworth in November 2007. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Failsworth with a long lease were worth £261,600. The average amount of ground rent was £60 invoiced every twelve months. The lease expired in 2077. Given that there were 52 years left we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including legals.
In 2014 we were phoned by Ms Amber Williams who, having owned a first floor apartment in Failsworth in February 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Failsworth with a long lease were worth £218,000. The average amount of ground rent was £45 collected quarterly. The lease elapsed on 3 September 2088. Taking into account 63 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of costs.