When it comes to long leasehold premises in Salford, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years remaining. Residents in Salford with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years outstanding, under the current Act the landlord can calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 Salford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Salford valuers.
Off the back of unsuccessful correspondence with the freeholder of her leasehold apartment in Salford, Emma started the lease extension process as the 80 year deadline was rapidly approaching. The legal work was concluded in October 2006. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. N Williams , who owned a garden apartment in Salford in February 2009. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical homes in Salford with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish on 23 August 2084. Considering the 60 years as a residual term we estimated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus costs.
Mr and Mrs. C Young bought a recently refurbished apartment in Salford in June 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Salford with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish on 3 March 2095. Considering the 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.