When it comes to long leasehold premises in Stockport, 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. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Leasehold owners in Stockport with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has fewer than eighty years left, under the relevant legislation the freeholder can calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society |
The conveyancing solicitors that we work with undertake Stockport 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.
Last October Jasper, started to get close to the eighty-year mark with the lease on his basement apartment in Stockport. Having purchased his home 18 years ago, the length of the lease was of little concern. Luckily, he recognised he needed to take steps soon on Extending the lease. Jasper was able to extend his lease just ahead of time in July. Jasper and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £875.
In 2009 we were called by Dr Leah Carter who, having took over the lease of a first floor flat in Stockport in March 2002. We are asked if we could estimate the price could be for a ninety year lease extension. Identical premises in Stockport with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed in 2096. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Last year we were approach by Dr Kelsey Cook , who moved into a purpose-built flat in Stockport in June 2003. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative residencies in Stockport with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed monthly. The lease expired on 2 August 2076. Having 50 years outstanding we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus legals.