When it comes to residential leasehold premises in Stalybridge, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years remaining. Leasehold owners in Stalybridge with a lease approaching 81 years left should seriously think of extending it sooner rather than later. When the lease term has less than 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 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 |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your Stalybridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her basement apartment in Stalybridge, Bethany started the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction was concluded in November 2006. The landlord’s fees were restricted to under 650 pounds.
In 2012 we were phoned by Mr and Mrs. S Walker who, having completed a purpose-built flat in Stalybridge in April 2005. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical flats in Stalybridge with an extended lease were valued around £254,200. The mid-range amount of ground rent was £60 billed annually. The lease ended in 2075. Considering the 51 years remaining we calculated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 not including costs.
In 2014 we were contacted by Mr and Mrs. E Mitchell who, having owned a garden apartment in Stalybridge in July 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Stalybridge with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish in 2086. Given that there were 62 years unexpired we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus costs.