The only way is down when it comes to Leigh lease terms. Leigh properties that have a residual term lower than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Leigh with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
Using our service will provide you better control over the value of your Leigh leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alfie was the the leasehold owner of a 2 bedroom apartment in Leigh on the market with a lease of a few days over sixty years left. Alfie informally spoke with his freeholder 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 subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Alfie to exercise his statutory right. Alfie procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Last Spring we were called by Mr and Mrs. I Moore , who bought a newly refurbished apartment in Leigh in October 2012. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Leigh with a long lease were worth £275,000. The average amount of ground rent was £45 invoiced monthly. The lease expired on 12 May 2094. Taking into account 69 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
In 2009 we were e-mailed by Mr and Mrs. P Mitchell who, having took over the lease of a basement apartment in Leigh in February 2001. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparative homes in Leigh with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out in 2083. Having 58 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.