With a residential leasehold property in Salford, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Residents in Salford with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has below eighty years remaining, under the current Act the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Salford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Salford valuers.
Half a year ago David, came perilously close to the eighty-year mark with the lease on his one bedroom flat in Salford. Having purchased his home 19 years ago, the unexpired term was of little concern. Luckily, it dawned on him that he would soon be paying an inflated amount for a lease extension. David extended the lease just in the nick of time last September. David and the landlord eventually agreed on sum of £6,000 . If he not met the deadline, the sum would have gone up by a minimum £925.
Mr and Mrs. Y Cook was assigned a lease of a one bedroom flat in Salford in February 2008. The question was if we could estimate the price could be for a 90 year lease extension. Similar properties in Salford with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease ended on 4 April 2076. Taking into account 50 years left we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus professional charges.
Last Autumn we were e-mailed by Mrs O Mitchell , who moved into a studio apartment in Salford in November 1997. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical homes in Salford with 100 year plus lease were in the region of £208,200. The average ground rent payable was £65 billed every twelve months. The lease ended in 2087. Given that there were 61 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.