Stalybridge leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Stalybridge will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Stalybridge with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure Stalybridge 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 lawyer we work with provide it.
In the wake of eight months of lengthy correspondence with the freeholder of her purpose-built apartment in Stalybridge, Sophie started the lease extension process just as the lease was approaching the all-important eighty-year threshold. The lease extension completed in April 2015. The freeholder’s charges were restricted to about 550 pounds.
In 2014 we were called by Mr and Mrs. I Laurent who, having completed a ground floor apartment in Stalybridge in April 2007. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative properties in Stalybridge with a long lease were in the region of £260,000. The average ground rent payable was £50 invoiced per annum. The lease concluded in 2098. Having 72 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Last Autumn we were contacted by Mr B Jones , who took over the lease of a purpose-built flat in Stalybridge in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Stalybridge with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease terminated on 8 February 2077. Having 51 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 not including fees.