Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Irlam. Inevitably, the period of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Irlam have the right to extend the lease for an additional 90 years under legislation. You should give due consideration before putting off your Irlam lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Irlam with more than one hundred years unexpired 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Irlam can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Irlam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel owned a studio flat in Irlam on the market with a lease of a few days over fifty eight years left. Daniel informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. I King moved into a ground floor flat in Irlam in July 2006. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar premises in Irlam with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 collected per annum. The lease end date was on 18 September 2100. Considering the 75 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Dr R Carter bought a garden flat in Irlam in September 2006. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Similar residencies in Irlam with an extended lease were in the region of £168,800. The mid-range ground rent payable was £60 collected monthly. The lease ran out in 2080. Considering the 55 years left we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.