Leigh 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 the lease becomes more expensive. Most owners of residential leasehold property in Leigh enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Leigh you must investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Leigh leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Leigh,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leigh valuers.
In recent months Felix, came critically close to the 80-year threshold with the lease on his one bedroom apartment in Leigh. In buying his flat twenty years ago, the unexpired term was of no interest. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Felix extended the lease just under the wire last July. Felix and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he not met the deadline, the figure would have increased by at least £850.
Last February we were called by Mr U Torres , who bought a studio apartment in Leigh in January 2004. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar homes in Leigh with an extended lease were valued about £225,800. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2085. Considering the 60 years outstanding we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including fees.
Last May we were e-mailed by Ms Naomi Khan , who acquired a one bedroom apartment in Leigh in March 2002. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative properties in Leigh with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded on 16 November 2105. Taking into account 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.