The only way is down when it comes to Salford lease terms. Salford properties that have a residual term less than than eighty years will de-escalate in market price even faster, and the cost of extending your lease will increase.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Using our service will provide you better control over the value of your Salford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her leasehold flat in Salford, Abbie initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work completed in August 2012. The landlord’s fees were negotiated to approximately 550 pounds.
Mr Freddie Norbert moved into a recently refurbished apartment in Salford in June 2001. The question was if we could approximate the price would be for a ninety year lease extension. Comparable flats in Salford with an extended lease were valued around £210,600. The average amount of ground rent was £45 collected quarterly. The lease ran out in 2088. Having 62 years left we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus professional charges.
Mrs I Murphy acquired a purpose-built flat in Salford in March 1995. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical homes in Salford with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2099. Taking into account 73 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.