Irlam and Cadishead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Irlam and Cadishead residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Irlam and Cadishead you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Irlam and Cadishead leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Irlam and Cadishead with in excess of 100 years remaining 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The conveyancing solicitors that we work with procure Irlam and Cadishead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Nathan was the the leasehold proprietor of a conversion apartment in Irlam and Cadishead on the market with a lease of a little over fifty eight years remaining. Nathan on an informal basis approached 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 subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Dr P Allen acquired a garden flat in Irlam and Cadishead in March 2010. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparative residencies in Irlam and Cadishead with an extended lease were valued about £218,000. The average ground rent payable was £45 collected quarterly. The lease expired on 22 August 2088. Taking into account 63 years outstanding we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.
Mrs V Davis was assigned a lease of a one bedroom apartment in Irlam and Cadishead in August 2002. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable residencies in Irlam and Cadishead with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 billed every twelve months. The lease lapsed on 28 April 2099. Taking into account 74 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.