Stalybridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Stalybridge enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Stalybridge you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Stalybridge with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancer we work with provide it.
Following protracted correspondence with the landlord of her basement flat in Stalybridge, Alice commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in June 2008. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Dr K Williams who, having purchased a one bedroom flat in Stalybridge in March 1995. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Similar premises in Stalybridge with 100 year plus lease were valued about £245,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 21 May 2094. Taking into account 68 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Christmas we were called by Dr Lucas Rose , who was assigned a lease of a purpose-built apartment in Stalybridge in November 2005. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical flats in Stalybridge with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 collected per annum. The lease ended on 11 April 2104. Considering the 78 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.