Reddish leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Reddish will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Reddish with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancing solicitors that we work with procure Reddish 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 conveyancing solicitor we work with provide it.
Following protracted discussions with the freeholder of her studio flat in Reddish, Shannon commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was finalised in February 2010. The landlord’s costs were restricted to slightly above 500 pounds.
Mr and Mrs. H Ricardo owned a one bedroom apartment in Reddish in April 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Reddish with an extended lease were worth £200,800. The mid-range ground rent payable was £65 billed monthly. The lease terminated in 2085. Given that there were 60 years remaining we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including professional charges.
Last Spring we were called by Dr Oliver Rogers , who took over the lease of a studio flat in Reddish in March 2002. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical premises in Reddish with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed in 2096. Given that there were 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.