Leigh leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Leigh will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Leigh with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with handle 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 conveyancer we work with provide it.
Leo owned a high value flat in Leigh being marketed with a lease of a little over 59 years left. Leo informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. H Murphy purchased a first floor flat in Leigh in June 2008. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative premises in Leigh with an extended lease were valued around £275,000. The average amount of ground rent was £65 billed yearly. The lease ended on 3 June 2094. Considering the 68 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Dr T Pérez purchased a recently refurbished apartment in Leigh in July 1997. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical flats in Leigh with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed yearly. The lease ended on 20 August 2083. Given that there were 57 years unexpired we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus legals.