There is no doubt about it a leasehold property in Skelmersdale is a wasting asset as a result of the diminishing lease term. If the residual term has, over 99 years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Skelmersdale will qualify for this right; nevertheless a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Skelmersdale with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Skelmersdale,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Skelmersdale valuers.
Half a year ago Freddie, came very close to the eighty-year threshold with the lease on his studio apartment in Skelmersdale. Having purchased his property twenty years previously, the lease term was of little concern. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Freddie extended the lease just under the wire last September. Freddie and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,100.
In 2009 we were e-mailed by Dr Jasmine Vincent who, having completed a first floor flat in Skelmersdale in July 2001. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparable premises in Skelmersdale with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish in 2089. Considering the 63 years outstanding we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of costs.
In 2013 we were contacted by Mr and Mrs. D Ali who, having was assigned a lease of a purpose-built flat in Skelmersdale in January 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Skelmersdale with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish in 2100. Taking into account 74 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.