When it comes to long leasehold premises in Skelmersdale, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Skelmersdale with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Skelmersdale with more than one hundred 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you enhanced control over the value of your Skelmersdale leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Andrew, started to get close to the eighty-year mark with the lease on his ground floor flat in Skelmersdale. Having bought his flat two decades ago, the lease term was of little relevance. As luck would have it, he realised he would imminently be paying way over the odds for a lease extension. Andrew arranged for a lease extension just ahead of time last March. Andrew and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If the lease had descended to less than 80 years, the figure would have escalated by at least £1,100.
Ms T Harris purchased a newly refurbished flat in Skelmersdale in May 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Skelmersdale with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced per annum. The lease came to a finish in 2077. Considering the 52 years outstanding we estimated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including expenses.
Mr and Mrs. M Taylor was assigned a lease of a newly refurbished apartment in Skelmersdale in March 2002. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative residencies in Skelmersdale with an extended lease were valued about £218,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish in 2088. Given that there were 63 years left we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus fees.