It’s an underpublicised truth that a Wigan residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Wigan property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Wigan will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Wigan with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Wigan can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 in-depth market knowledge 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.
In recent months Joseph, came very near to the eighty-year threshold with the lease on his ground floor flat in Wigan. Having bought his property 18 years previously, the lease term was of minimal significance. by good luck, he became aware that he would imminently be paying an escalated premium for Extending the lease. Joseph was able to extend his lease just under the wire last September. Joseph and the freeholder in the end settled on the final figure of £5,500 . If he had missed the deadline, the sum would have escalated by at least £925.
Last Summer we were called by Ms Jennifer Roberts , who was assigned a lease of a ground floor flat in Wigan in May 2003. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical premises in Wigan with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed on 20 September 2099. Taking into account 73 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Mr Caleb Alexander moved into a studio flat in Wigan in April 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Similar flats in Wigan with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 billed monthly. The lease ended on 1 July 2079. Considering the 53 years unexpired we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including expenses.