Wigan leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Wigan will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Wigan can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 Wigan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Seth, started to get near to the 80-year mark with the lease on his first floor flat in Wigan. Having bought his property two decades ago, the unexpired term was of minimal importance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Seth extended the lease at the eleventh hour in July. Seth and the freeholder in the end settled on the final figure of £5,000 . If the lease had dipped lower than 80 years, the sum would have gone up by at least £1,050.
Last month we were approach by Mr Daniel Martin , who moved into a purpose-built apartment in Wigan in November 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Wigan with an extended lease were worth £250,000. The average ground rent payable was £50 invoiced per annum. The lease ran out on 25 November 2095. Considering the 69 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Mr F Davis acquired a purpose-built apartment in Wigan in May 2009. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Identical premises in Wigan with a long lease were valued around £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease terminated on 26 July 2106. Considering the 80 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.