Top reasons for Salford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Salford property value

It’s a harsh certainty that a Salford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Salford property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Salford will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.

Salford property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to issue a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to get nervous at around 75 years. This may cause difficulties when you come to sell or remortgage your property as it will be practically unmortgageable. Even though you may have no imminent intention to sell but when you do your purchaser must wait a couple of years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Salford?

Retaining our service gives you enhanced control over the value of your Salford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Salford Lease Extension Case Studies:

Mason, Salford, Greater Manchester

In recent months Mason, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Salford. Having bought his property 18 years previously, the length of the lease was of no interest. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Mason arranged for a lease extension just ahead of time in March. Mason and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had gone below eighty years, the amount would have gone up by at least £875.

Salford case:

Mr and Mrs. J Sharif bought a purpose-built apartment in Salford in February 2005. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Salford with an extended lease were worth £260,000. The average amount of ground rent was £50 collected yearly. The lease expired in 2098. Having 72 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.

Salford case:

In 2011 we were phoned by Dr Connor Johnson who, having bought a purpose-built flat in Salford in March 1998. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable flats in Salford with a long lease were in the region of £256,600. The average ground rent payable was £60 billed quarterly. The lease termination date was on 7 March 2078. Having 52 years left we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including expenses.