Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Salford. Clearly, the period of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Salford have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Please give careful attention before putting off your Salford lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Salford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jasper, came precariously near to the eighty-year mark with the lease on his first floor flat in Salford. In buying his home twenty years previously, the unexpired term was of minimal significance. As luck would have it, he recognised he needed to take action soon on a lease extension. Jasper was able to extend his lease just in the nick of time last March. Jasper and the landlord subsequently settled on an amount of £5,000 . If the lease had slipped to less than 80 years, the price would have increased by at least £925.
Ms S Laurent purchased a one bedroom flat in Salford in September 2011. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Salford with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 billed per annum. The lease expired on 5 August 2088. Considering the 63 years as a residual term we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus costs.
Last month we were called by Mr and Mrs. R Howard , who owned a basement apartment in Salford in September 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in Salford with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £55 billed yearly. The lease expiry date was on 21 September 2099. Considering the 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.