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Top reasons for Wigan lease extension


Main reasons to start your Wigan lease extension today:

Increase your lease and increase your Wigan property value

Wigan leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Wigan residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wigan you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Wigan flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold properties in Wigan with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders will not lend with a short lease

Lenders do not like short residential leases. You are likely to experience difficulties if you want to sell your flat in Wigan if the unexpired lease term is less than the criteria set by the majority of banks and building societies. Different mortgage companies have different criteria but in the main they are looking for a minimum remaining lease term of 65 years.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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.
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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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.

What makes us experts in Wigan lease extensions?

Using our service will provide you enhanced control over the value of your Wigan leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Wigan Lease Extension Case Summaries:

Georgia, Wigan, Greater Manchester,

Off the back of unsuccessful negotiations with the landlord of her first floor flat in Wigan, Georgia commenced the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work was finalised in September 2014. The landlord’s costs were restricted to below 450 GBP.

Wigan case:

Last year we were phoned by Mrs Jade Watson , who owned a basement flat in Wigan in May 2001. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar properties in Wigan with 100 year plus lease were in the region of £227,800. The average amount of ground rent was £45 invoiced per annum. The lease terminated on 19 March 2090. Having 65 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.

Wigan case:

Last Summer we were approach by Dr Logan Harris , who purchased a garden flat in Wigan in August 2007. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Wigan with an extended lease were in the region of £275,000. The average amount of ground rent was £55 billed yearly. The lease ran out on 14 July 2101. Having 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.