Stockport leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Stockport will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Stockport valuers.
Trailing unsuccessful discussions with the freeholder of her leasehold apartment in Stockport, Ashleigh commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction was concluded in March 2005. The freeholder’s costs were restricted to a tad over four hundred GBP.
Last month we were e-mailed by Mrs N Leroy , who completed a newly refurbished apartment in Stockport in July 1997. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative flats in Stockport with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out on 6 February 2101. Considering the 76 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Mr O James bought a studio apartment in Stockport in September 2003. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable flats in Stockport with an extended lease were valued around £176,200. The average ground rent payable was £65 billed per annum. The lease concluded on 3 November 2081. Given that there were 56 years remaining we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of expenses.