The only way is down when it comes to Irlam lease terms. Irlam leaseholds that have a lease term lower than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold properties in Irlam with in excess of 100 years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Irlam leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her garden flat in Irlam, Rachel initiated the lease extension process as the 80 year mark was fast coming. The legal work was finalised in February 2008. The landlord’s costs were negotiated to a tad over 500 pounds.
Last Christmas we were e-mailed by Dr N Michel , who took over the lease of a ground floor apartment in Irlam in January 2005. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Irlam with a long lease were valued around £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended in 2097. Taking into account 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last Autumn we were e-mailed by Mr Riley Reed , who bought a first floor apartment in Irlam in June 2007. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical homes in Irlam with an extended lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed in 2077. Given that there were 52 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 not including costs.