As the length of the unexpired term of a Leigh domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Leigh will qualify for this right; however a lawyer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Leigh,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leigh valuers.
Off the back of protracted discussions with the freeholder of her two bedroom apartment in Leigh, Isabelle commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work was finalised in June 2005. The landlord’s fees were restricted to about six hundred GBP.
Last Summer we were approach by Mr F Ali , who took over the lease of a basement apartment in Leigh in July 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable premises in Leigh with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected yearly. The lease expired in 2105. Considering the 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2014 we were phoned by Dr E Díaz who, having was assigned a lease of a studio flat in Leigh in April 2010. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable premises in Leigh with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 invoiced yearly. The lease ended on 3 October 2094. Taking into account 69 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.