Wigan leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher amount will be payable. Leasehold owners in Wigan will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Wigan,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wigan valuers.
Stanley was the the leasehold proprietor of a high value apartment in Wigan being marketed with a lease of a little over 72 years left. Stanley informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last March we were approach by Dr O James , who moved into a studio flat in Wigan in September 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Wigan with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded on 24 April 2096. Considering the 71 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Mr T Torres purchased a garden flat in Wigan in March 2004. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable residencies in Wigan with a long lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2076. Taking into account 51 years outstanding we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including fees.