Irlam and Cadishead leases on residential deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Irlam and Cadishead will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Irlam and Cadishead with more than 100 years unexpired 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Using our service will provide you increased control over the value of your Irlam and Cadishead leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dexter was the the leasehold proprietor of a conversion apartment in Irlam and Cadishead on the market with a lease of a few days over fifty eight years left. Dexter on an informal basis contacted his landlord being a well known local-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 initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2014 we were called by Mr and Mrs. G Mason who, having bought a purpose-built flat in Irlam and Cadishead in February 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Irlam and Cadishead with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out in 2103. Taking into account 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.
In 2012 we were approached by Mr and Mrs. G Parker who, having completed a purpose-built flat in Irlam and Cadishead in June 2010. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical properties in Irlam and Cadishead with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 invoiced annually. The lease expired in 2083. Considering the 57 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.