When it comes to residential leasehold property in Stalybridge, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Stalybridge with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service gives you enhanced control over the value of your Stalybridge leasehold, as your property will be more valuable and marketable in terms of 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.
Michael owned a 2 bedroom flat in Stalybridge being marketed with a lease of fraction over sixty years unexpired. Michael informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert advice and secured satisfactory deal informally and readily saleable.
Dr Reuben Parker moved into a newly refurbished flat in Stalybridge in August 2009. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable properties in Stalybridge with 100 year plus lease were in the region of £173,800. The average ground rent payable was £65 billed quarterly. The lease expired on 2 June 2081. Having 55 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.
Last August we were contacted by Mr Isaac Martinez , who bought a ground floor flat in Stalybridge in October 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar homes in Stalybridge with a long lease were valued about £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended on 4 September 2092. Considering the 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.