The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Irlam and Cadishead have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give careful consideration before delaying your Irlam and Cadishead lease extension. Postponing the costs today simply increases the premium you will eventually be required to pay to extend the lease.
Leasehold premises in Irlam and Cadishead with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Alfie was the the leasehold proprietor of a studio flat in Irlam and Cadishead being sold with a lease of a little over fifty eight years unexpired. Alfie informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last Spring we were e-mailed by Mr D Ward , who bought a newly refurbished apartment in Irlam and Cadishead in May 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical flats in Irlam and Cadishead with an extended lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed quarterly. The lease lapsed in 2079. Considering the 53 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus professional charges.
Dr Sophia Wilson owned a one bedroom flat in Irlam and Cadishead in November 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Irlam and Cadishead with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated on 14 June 2090. Given that there were 64 years remaining we estimated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including costs.