The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Ireleth and Askam may extend the lease for a further 90 years under legislation. Do think carefully before delaying your Ireleth and Askam lease extension. Postponing the costs now simply increases the premium you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Ireleth and Askam,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ireleth and Askam valuers.
Austin owned a 2 bedroom flat in Ireleth and Askam being sold with a lease of fraction over 59 years remaining. Austin on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Austin to invoke his statutory right. Austin obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Autumn we were phoned by Mr and Mrs. M Bell , who purchased a ground floor flat in Ireleth and Askam in February 2000. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical residencies in Ireleth and Askam with an extended lease were valued around £290,000. The average ground rent payable was £60 collected monthly. The lease termination date was on 20 November 2105. Taking into account 80 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
In 2011 we were called by Dr Rachael Brown who, having completed a one bedroom flat in Ireleth and Askam in August 2006. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative premises in Ireleth and Askam with a long lease were worth £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish on 21 September 2085. Given that there were 60 years remaining we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus costs.