The market value of a leasehold property in Stalybridge depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed prior to the 80 year threshold. Current legislation enables Stalybridge qualifying lessees to an additional term of ninety years over and above the existing term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Stalybridge with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Stalybridge,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stalybridge valuers.
Last October Cameron, came perilously close to the 80-year threshold with the lease on his studio apartment in Stalybridge. In buying his home 19 years previously, the length of the lease was of no importance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Cameron was able to extend his lease just under the wire in June. Cameron and the landlord ultimately settled on a premium of £6,000 . If he had missed the deadline, the sum would have become more exhorbitant by at least £900.
In 2014 we were e-mailed by Ms Isobel Rogers who, having acquired a first floor apartment in Stalybridge in April 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Stalybridge with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 collected monthly. The lease concluded in 2102. Considering the 77 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
Last year we were called by Mrs H Turner , who owned a newly refurbished flat in Stalybridge in May 2004. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparative residencies in Stalybridge with 100 year plus lease were worth £183,600. The average ground rent payable was £65 collected yearly. The lease concluded on 1 July 2082. Having 57 years remaining we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.