Why you should commence your Salford lease extension

Why you should start your Salford lease extension today:

Increase your lease and increase your Salford property value

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Salford. Inevitably, the period of lease left reduces over time. This is often ignored and only becomes a problem when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Salford have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give due consideration before putting off your Salford lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease

An extended lease is almost the same value as a freehold

Leasehold residencies in Salford with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders will not lend on a short lease

The trend since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Salford?

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.

Salford Lease Extension Case Studies:

Daniel, Salford, Greater Manchester,

Daniel was the the leasehold proprietor of a 2 bedroom apartment in Salford on the market with a lease of a few days over 72 years remaining. Daniel informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.

Salford case:

Mr and Mrs. O Adams acquired a basement flat in Salford in April 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Salford with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 invoiced yearly. The lease terminated in 2083. Taking into account 57 years outstanding we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.

Salford case:

Ms Samantha Torres bought a ground floor apartment in Salford in November 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Salford with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 billed monthly. The lease terminated on 14 October 2094. Taking into account 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.