The nearer a domestic lease in Salford gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Salford will qualify for this right; however a lawyer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Salford can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Salford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her purpose-built apartment in Salford, Amelia commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension was finalised in February 2006. The freeholder’s fees were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. J Rivera , who completed a basement flat in Salford in April 2007. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Salford with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected yearly. The lease expired on 25 July 2103. Taking into account 77 years outstanding we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Last May we were phoned by Mrs Y Morris , who purchased a recently refurbished apartment in Salford in July 2009. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical flats in Salford with a long lease were in the region of £183,600. The average amount of ground rent was £65 invoiced annually. The lease expired in 2083. Having 57 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.