As the length of the unexpired term of a Stalybridge residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Stalybridge will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you increased control over the value of your Stalybridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 John, came dangerously close to the eighty-year mark with the lease on his studio apartment in Stalybridge. Having purchased his flat two decades ago, the length of the lease was of little concern. As luck would have it, he recognised he needed to take action soon on Extending the lease. John extended the lease at the eleventh hour last May. John and the freeholder subsequently settled on sum of £5,500 . If he not met the deadline, the premium would have escalated by at least £1,150.
Last August we were called by Mr and Mrs. K Cooper , who took over the lease of a garden flat in Stalybridge in September 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparative properties in Stalybridge with a long lease were worth £198,400. The mid-range amount of ground rent was £65 collected monthly. The lease finished on 22 April 2085. Having 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.
Last Winter we were called by Mr Aiden Brooks , who acquired a studio apartment in Stalybridge in March 2012. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Stalybridge with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease terminated in 2096. Considering the 70 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.