On the balance of probabilities where you own a flat in Stretford you actually own a long leasehold interest over your property
Leasehold premises in Stretford with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Stretford leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her one bedroom flat in Stretford, Hannah initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The lease extension was finalised in November 2007. The freeholder’s costs were restricted to approximately 600 pounds.
In 2009 we were approached by Mr and Mrs. R Gunderson who, having was assigned a lease of a purpose-built apartment in Stretford in July 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical residencies in Stretford with a long lease were valued about £225,400. The mid-range amount of ground rent was £45 collected yearly. The lease elapsed on 7 July 2089. Given that there were 64 years outstanding we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of expenses.
In 2009 we were called by Dr G Turner who, having completed a purpose-built flat in Stretford in June 2008. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative premises in Stretford with an extended lease were valued about £270,000. The average ground rent payable was £55 collected annually. The lease lapsed in 2100. Considering the 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.