Salford leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be due. Flat owners in Salford will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Salford with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Salford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Salford valuers.
Blake was the the leasehold proprietor of a studio apartment in Salford being sold with a lease of fraction over 72 years unexpired. Blake informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. T Brooks was assigned a lease of a basement flat in Salford in October 1997. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in Salford with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish on 8 September 2076. Having 51 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including expenses.
Last month we were called by Mr and Mrs. O Leroy , who completed a garden apartment in Salford in February 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Salford with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease end date was in 2087. Given that there were 62 years remaining we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus legals.