With a residential leasehold premises in Wigan, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent 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 more expensive especially once there are fewer than 80 years left. Leasehold owners in Wigan with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Wigan with over 100 years outstanding 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wigan can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Wigan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her garden apartment in Wigan, Rachael initiated the lease extension process as the eighty year deadline was swiftly coming. The transaction was finalised in October 2011. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were called by Ms S Stewart who, having took over the lease of a basement flat in Wigan in October 2006. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable residencies in Wigan with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish in 2092. Taking into account 66 years unexpired we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Ms Madeleine Cooper was assigned a lease of a purpose-built apartment in Wigan in November 2010. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparable homes in Wigan with an extended lease were worth £275,000. The average amount of ground rent was £55 billed every twelve months. The lease elapsed on 11 June 2103. Considering the 77 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.