Salford leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Flat owners in Salford will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Salford with in excess of 100 years remaining on the lease are sometimes 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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Salford can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
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 procuring Salford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her garden apartment in Salford, Robyn commenced the lease extension process as the eighty year threshold was quickly nearing. The lease extension completed in September 2009. The landlord’s costs were restricted to less than five hundred GBP.
In 2010 we were contacted by Dr Y Hill who, having took over the lease of a one bedroom apartment in Salford in October 2010. We are asked if we could estimate the premium would be to extend the lease by an additional years. Identical homes in Salford with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 billed annually. The lease terminated on 15 August 2104. Given that there were 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
Last Christmas we were phoned by Dr Jamie Petit , who acquired a purpose-built flat in Salford in September 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Salford with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced yearly. The lease elapsed in 2084. Taking into account 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.