There is no doubt about it a leasehold property in Wigan is a wasting asset as a result of the shortening lease. If the lease has, more than 99 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Wigan will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Wigan 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wigan can be a difficult process. We recommend you secure 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 a wealth of experience 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.
Subsequent to unsuccessful negotiations with the landlord of her garden flat in Wigan, Amber initiated the lease extension process as the 80 year threshold was swiftly nearing. The legal work was concluded in July 2008. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. W Stewart , who purchased a newly refurbished flat in Wigan in November 1999. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Wigan with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expired on 16 August 2098. Taking into account 73 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2009 we were called by Mr and Mrs. H Petit who, having bought a one bedroom apartment in Wigan in September 1999. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Wigan with an extended lease were valued around £264,000. The mid-range ground rent payable was £60 billed per annum. The lease elapsed in 2078. Given that there were 53 years outstanding we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus professional charges.