With a domestic leasehold premises in Openshaw, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Residents in Openshaw with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once a lease has less than 80 years remaining, under the current statute the freeholder can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Openshaw can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience dealing with Openshaw lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Kyle, started to get close to the 80-year threshold with the lease on his basement apartment in Openshaw. In buying his flat two decades ago, the length of the lease was of little relevance. As luck would have it, he realised he needed to take action soon on Extending the lease. Kyle extended the lease just ahead of time last June. Kyle and the freeholder eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £850.
In 2011 we were contacted by Dr D Adams who, having purchased a first floor flat in Openshaw in January 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Openshaw with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 collected yearly. The lease terminated on 14 September 2090. Having 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus professional charges.
In 2014 we were contacted by Mr and Mrs. I Cox who, having acquired a purpose-built flat in Openshaw in April 2002. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical homes in Openshaw with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2079. Given that there were 54 years left we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of expenses.