Stalybridge leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Stalybridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless 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 Alex, came precariously close to the eighty-year mark with the lease on his basement flat in Stalybridge. In buying his property two decades ago, the length of the lease was of minimal concern. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Alex arranged for a lease extension just under the wire in August. Alex and the freeholder via the management company subsequently agreed on sum of £5,500 . If the lease had slipped to less than 80 years, the sum would have escalated by at least £900.
Ms I Kelly completed a garden apartment in Stalybridge in November 2004. The question was if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Stalybridge with an extended lease were worth £203,200. The average amount of ground rent was £65 collected yearly. The lease ended on 28 October 2087. Having 61 years unexpired we calculated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including fees.
In 2014 we were approached by Mr and Mrs. F Clark who, having bought a one bedroom apartment in Stalybridge in August 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 90 years. Identical premises in Stalybridge with an extended lease were worth £260,000. The average amount of ground rent was £50 collected quarterly. The lease ended in 2098. Given that there were 72 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.