Urmston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Urmston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Urmston you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Urmston with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Urmston can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge procuring Urmston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her basement apartment in Urmston, Gemma started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction completed in October 2006. The landlord’s charges were kept to an absolute minimum.
In 2010 we were contacted by Dr J Pérez who, having purchased a ground floor apartment in Urmston in October 2001. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar residencies in Urmston with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended on 21 July 2080. Having 55 years remaining we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus legals.
Dr U Garcia bought a one bedroom flat in Urmston in November 2003. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical properties in Urmston with an extended lease were in the region of £295,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2100. Given that there were 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.