When it comes to long leasehold premises in Stalybridge, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years left. Anyone in Stalybridge with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than eighty years remaining, under the current Act the landlord can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Stalybridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Matthew, started to get near to the 80-year mark with the lease on his two bedroom flat in Stalybridge. Having bought his flat 18 years previously, the lease term was of little significance. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Matthew arranged for a lease extension at the eleventh hour last August. Matthew and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If the lease had descended below eighty years, the figure would have gone up by at least £1,075.
Ms I Harris was assigned a lease of a studio flat in Stalybridge in September 1995. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical residencies in Stalybridge with an extended lease were in the region of £186,000. The average amount of ground rent was £65 invoiced monthly. The lease expired in 2083. Considering the 58 years as a residual term we calculated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including costs.
Mr G Lefebvre acquired a one bedroom apartment in Stalybridge in October 2002. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable premises in Stalybridge with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded on 17 November 2094. Given that there were 69 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.