With a long leasehold premises in Leigh, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Leigh with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| National Westminster Bank | |
| Skipton Building Society | |
| Yorkshire Building Society |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
In 2014 Daniel, started to get close to the eighty-year mark with the lease on his first floor flat in Leigh. In buying his flat two decades ago, the unexpired term was of no interest. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Daniel extended the lease just in the nick of time in July. Daniel and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he not met the deadline, the sum would have gone up by at least £950.
In 2009 we were phoned by Dr John Campbell who, having was assigned a lease of a one bedroom apartment in Leigh in July 2011. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Leigh with a long lease were valued around £206,200. The mid-range ground rent payable was £55 billed yearly. The lease finished in 2082. Given that there were 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.
Mr and Mrs. F Roux was assigned a lease of a garden flat in Leigh in August 1999. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative properties in Leigh with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 collected yearly. The lease finished on 5 October 2102. Having 76 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.