Why you should commence your Salford lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/salford">Salford</a> leasehold property depreciates with the years remaining on the lease.
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<p> Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Salford. Inevitably, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Salford have the right to extend the lease for a further ninety years under legislation. Please give due consideration before delaying your Salford lease extension. Holding off that expense now only increases the price you will eventually have to pay for a lease extension <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
<h4>Mortgage lenders may not loan monies on a short lease</h4> Lenders are really clamping down as regards to homes in Salford with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus narrowing the amount of potential buyers.
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<tr><th>Lender</th>
<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Chelsea Building Society</td>
<td> 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.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<h4> Get in touch with one of our Salford lease extension solicitors or enfranchisement solicitors
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<p> Engaging our service will provide you increased control over the value of your Salford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell.
The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Salford Lease Extension Case Summaries:
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<h5> Tyler, Salford, Greater Manchester</h5>
<p> In recent months Tyler, came perilously close to the eighty-year mark with the lease on his purpose- built apartment in Salford. In buying his flat twenty years previously, the lease term was of no relevance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Tyler extended the lease just under the wire last January. Tyler and the freeholder via the management company subsequently settled on sum of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,125.
<h5>Salford case:</h5>
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In 2013 we were e-mailed by Ms F Rose who, having completed a purpose-built apartment in Salford in March 2006. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable homes in Salford with a long lease were valued around £265,000. The average ground rent payable was £55 invoiced per annum. The lease concluded in 2100. Taking into account 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
<h5>Salford case:</h5>
<p> Dr Charlie James was assigned a lease of a first floor flat in Salford in February 2011. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable homes in Salford with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 collected per annum. The lease finished in 2080. Having 54 years as a residual term we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.
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