Unfortunately that a Wigan residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Wigan property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term drops below 80 years, you will end up paying 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 extra value that a lease extension will add the property Most flat owners in Wigan will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Wigan with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Wigan,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wigan valuers.
Luca was the the leasehold owner of a 2 bedroom flat in Wigan being sold with a lease of fraction over sixty years left. Luca on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen 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 Luca to exercise his statutory right. Luca procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mr D Richardson who, having was assigned a lease of a newly refurbished flat in Wigan in July 2010. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative premises in Wigan with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed on 12 January 2078. Taking into account 53 years outstanding we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of legals.
Mr and Mrs. D Lefebvre completed a purpose-built flat in Wigan in March 2009. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical premises in Wigan with a long lease were valued around £225,400. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 12 January 2089. Given that there were 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of costs.