With a residential leasehold premises in Whalley Range, you are actually buying a right to reside in a property for a prescribed time frame. Modern 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 rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years left. Leasehold owners in Whalley Range with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. When the lease term has fewer than eighty years left, under the relevant Act the freeholder can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Whalley Range 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.
Last Winter Jake, started to get close to the 80-year threshold with the lease on his ground floor apartment in Whalley Range. Having bought his flat 19 years ago, the length of the lease was of little significance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Jake arranged for a lease extension at the eleventh hour in July. Jake and the freeholder via the managing agents in the end agreed on sum of £5,500 . If the lease had gone below eighty years, the price would have increased by at least £850.
Mr and Mrs. S Robinson bought a purpose-built flat in Whalley Range in June 1995. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical premises in Whalley Range with a long lease were valued around £264,000. The mid-range ground rent payable was £60 collected quarterly. The lease terminated in 2078. Given that there were 53 years unexpired we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus professional charges.
Last month we were approach by Dr U Mason , who bought a ground floor apartment in Whalley Range in February 2005. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable premises in Whalley Range with 100 year plus lease were worth £225,400. The average ground rent payable was £45 billed per annum. The lease concluded in 2089. Considering the 64 years remaining we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus expenses.