Irlam leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Irlam will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 Irlam can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Irlam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden owned a studio flat in Irlam being marketed with a lease of just over 72 years remaining. Aiden on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were approach by Dr Y Adams , who completed a purpose-built flat in Irlam in February 2012. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Irlam with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease lapsed on 21 January 2098. Considering the 73 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Ms Isabel Bell bought a studio apartment in Irlam in May 1996. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative homes in Irlam with a long lease were valued about £264,000. The mid-range ground rent payable was £60 invoiced yearly. The lease elapsed on 17 September 2078. Considering the 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including fees.