Stockport leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Stockport will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Stockport with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Stockport,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stockport valuers.
In the wake of eight months of protracted correspondence with the landlord of her basement apartment in Stockport, Alisha commenced the lease extension process just as her lease was coming close to the all-important 80-year threshold. The lease extension was concluded in January 2015. The landlord’s fees were restricted to approximately four hundred pounds.
Last Spring we were approach by Dr Ollie Sánchez , who took over the lease of a first floor apartment in Stockport in September 1997. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable residencies in Stockport with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2089. Given that there were 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus costs.
In 2013 we were called by Mr and Mrs. S Morgan who, having purchased a one bedroom apartment in Stockport in July 1999. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Stockport with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished on 3 June 2100. Given that there were 74 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.