Top reasons for Salford lease extension

Top reasons for lease extension now:

A Salford leasehold property depreciates with the years remaining on the lease.

Salford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Salford tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Salford you really ought to investigate if your lease has between 70 and 90 years left. There are good reasons why a Salford flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold premises in Salford with more than one hundred years left 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not loan monies on a short lease

Almost all banks and building societies will not grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will no doubt encounter difficulties to obtain a mortgage and this could result in your Salford property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Salford lease extensions?

The conveyancers that we work with procure Salford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Salford Lease Extension Example Cases:

Ben, Salford, Greater Manchester

In 2014 Ben, came perilously near to the eighty-year threshold with the lease on his leasehold apartment in Salford. Having purchased his home 18 years ago, the length of the lease was of little interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Ben extended the lease at the eleventh hour last March. Ben and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he not met the deadline, the sum would have become more costly by a minimum £1,100.

Salford case:

In 2010 we were e-mailed by Dr M Rivera who, having took over the lease of a newly refurbished apartment in Salford in September 2008. The question was if we could approximate the price would be to prolong the lease by 90 years. Similar flats in Salford with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease ran out in 2106. Considering the 80 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.

Salford case:

Mr Mason Murphy was assigned a lease of a purpose-built flat in Salford in April 2008. The question was if we could estimate the price could be to prolong the lease by ninety years. Similar flats in Salford with an extended lease were worth £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease expiry date was in 2086. Given that there were 60 years left we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.