On the balance of probabilities where you own a flat in Leigh you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Leigh can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 procuring Leigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph was the the leasehold proprietor of a conversion apartment in Leigh on the market with a lease of a few days over fifty eight years outstanding. Joseph informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last January we were contacted by Mr I Vincent , who owned a purpose-built apartment in Leigh in February 2010. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparable homes in Leigh with an extended lease were in the region of £260,200. The average amount of ground rent was £65 collected annually. The lease came to a finish on 13 May 2092. Given that there were 66 years unexpired we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus professional charges.
In 2010 we were e-mailed by Dr Harriet François who, having took over the lease of a ground floor apartment in Leigh in January 2002. We are asked if we could approximate the price would be for a ninety year lease extension. Identical homes in Leigh with an extended lease were valued around £198,800. The average amount of ground rent was £55 collected annually. The lease terminated on 6 March 2081. Taking into account 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of legals.