Salford leases on domestic deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Salford will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Salford with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Engaging our service gives you enhanced control over the value of your Salford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Theo, came very near to the eighty-year threshold with the lease on his one bedroom flat in Salford. In buying his flat 18 years ago, the length of the lease was of minimal concern. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Theo was able to extend his lease at the eleventh hour in May. Theo and the landlord who owned the flat above eventually settled on sum of £6,000 . If he not met the deadline, the premium would have become more costly by a minimum £1,075.
In 2012 we were called by Ms M White who, having moved into a ground floor apartment in Salford in August 2008. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative premises in Salford with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease end date was on 21 August 2086. Given that there were 60 years left we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus professional charges.
Dr Kelsey Reed bought a one bedroom flat in Salford in May 2000. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar premises in Salford with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish on 26 July 2097. Considering the 71 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.