With a long leasehold property in Leigh, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years remaining. Anyone in Leigh with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has under eighty years outstanding, under the current statute the landlord can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Leigh can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Leigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Max, came dangerously near to the 80-year mark with the lease on his basement flat in Leigh. Having bought his home 19 years previously, the lease term was of minimal bearing. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Max was able to extend his lease just under the wire in August. Max and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had fallen below eighty years, the price would have escalated by at least £1,075.
Last Winter we were approach by Ms Erin Michel , who acquired a one bedroom flat in Leigh in October 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical residencies in Leigh with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed quarterly. The lease end date was in 2102. Given that there were 77 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
Last June we were e-mailed by Dr D Hall , who purchased a one bedroom apartment in Leigh in January 2011. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical homes in Leigh with an extended lease were in the region of £260,200. The average amount of ground rent was £65 collected quarterly. The lease ended in 2091. Having 66 years left we calculated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.