It’s an underpublicised truth that a Ince in Makerfield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Ince in Makerfield property market.Once your lease nears 85ish years, you should start considering 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 under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Ince in Makerfield will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you increased control over the value of your Ince in Makerfield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her one bedroom flat in Ince in Makerfield, Zoe started the lease extension process as the eighty year deadline was quickly advancing. The transaction was finalised in August 2011. The landlord’s costs were restricted to a tad over 700 pounds.
Last Spring we were e-mailed by Mr and Mrs. B Green , who owned a garden flat in Ince in Makerfield in August 2000. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative residencies in Ince in Makerfield with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 invoiced annually. The lease ended in 2097. Given that there were 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last year we were e-mailed by Dr Jackson Murphy , who bought a garden flat in Ince in Makerfield in March 2011. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Ince in Makerfield with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced every twelve months. The lease finished in 2086. Taking into account 61 years outstanding we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus fees.