Chances are that if you own a flat in Stockport you actually own a long leasehold interest over your property
Leasehold premises in Stockport with over 100 years remaining on the lease are sometimes regarded as a ‘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 upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Stockport,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stockport valuers.
In 2014 Archie, started to get close to the eighty-year mark with the lease on his purpose- built flat in Stockport. Having bought his flat two decades ago, the unexpired term was of minimal significance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Archie arranged for a lease extension at the eleventh hour in July. Archie and the freeholder ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £1,100.
Dr E Watson owned a basement apartment in Stockport in November 2010. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar premises in Stockport with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease terminated on 27 October 2082. Given that there were 57 years left we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
Mr and Mrs. Y Bertrand purchased a first floor apartment in Stockport in September 2001. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative homes in Stockport with 100 year plus lease were valued around £245,000. The average ground rent payable was £45 invoiced monthly. The lease concluded in 2093. Taking into account 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.