Salford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Salford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Salford you should see if your lease has between seventy and ninety years left. There are good reasons why a Salford flat owner with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
Leasehold properties in Salford with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society | |
| Virgin |
The conveyancing solicitors that we work with procure Salford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Aarav, came seriously close to the eighty-year mark with the lease on his ground floor apartment in Salford. In buying his home two decades ago, the length of the lease was of minimal interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Aarav extended the lease just under the wire in January. Aarav and the freeholder via the management company ultimately settled on sum of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by at least £875.
Last August we were e-mailed by Ms Emma Johnson , who completed a ground floor apartment in Salford in August 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical homes in Salford with an extended lease were worth £264,000. The average amount of ground rent was £60 invoiced quarterly. The lease expired on 12 November 2079. Considering the 53 years left we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus legals.
Mr and Mrs. J Wood bought a garden apartment in Salford in November 1995. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in Salford with a long lease were valued about £225,400. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 20 February 2090. Taking into account 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of expenses.