With a residential leasehold premises in Leigh, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Leasehold owners in Leigh with a lease nearing 81 years left should seriously think of extending it without delay. Once a lease has below eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
The conveyancers that we work with handle Leigh 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.
Jack was the the leasehold owner of a conversion flat in Leigh being marketed with a lease of a few days over fifty eight years remaining. Jack on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Jack to exercise his statutory right. Jack procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr F Taylor owned a garden flat in Leigh in August 2008. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar properties in Leigh with a long lease were worth £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded in 2090. Given that there were 65 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.
In 2012 we were phoned by Mr and Mrs. K Mercier who, having acquired a basement flat in Leigh in January 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Leigh with an extended lease were valued about £191,400. The average ground rent payable was £55 collected quarterly. The lease termination date was in 2079. Taking into account 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of fees.