The nearer a residential lease in Tyldesley nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner rather than later. Most flat owners in Tyldesley will qualify for this right; that being said a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Tyldesley with over 100 years remaining on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 conveyancers that we work with procure Tyldesley 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 lawyer we work with provide it.
Off the back of lengthy correspondence with the landlord of her studio apartment in Tyldesley, Lucy initiated the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was finalised in January 2007. The landlord’s fees were restricted to slightly above 500 pounds.
Last Spring we were called by Mr and Mrs. F Roux , who moved into a one bedroom apartment in Tyldesley in August 2012. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical flats in Tyldesley with an extended lease were valued around £250,400. The average amount of ground rent was £65 billed every twelve months. The lease terminated on 14 November 2089. Considering the 64 years outstanding we calculated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus costs.
In 2011 we were e-mailed by Mr and Mrs. J Cook who, having owned a basement flat in Tyldesley in July 2004. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Tyldesley with an extended lease were worth £184,000. The average ground rent payable was £55 collected quarterly. The lease concluded in 2078. Having 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.