When it comes to domestic leasehold premises in Stretford, you are actually buying an entitlement to live in a property for a set period of time. Modern 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 extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Stretford with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has less than eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Stretford with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Stretford 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.
Last Winter Rory, started to get near to the eighty-year threshold with the lease on his garden apartment in Stretford. In buying his property two decades ago, the unexpired term was of little concern. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Rory was able to extend his lease at the eleventh hour in May. Rory and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had descended to less than eighty years, the premium would have increased by at least £850.
Last Summer we were phoned by Mr J Campbell , who acquired a basement apartment in Stretford in August 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Stretford with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease ended on 16 May 2082. Considering the 56 years unexpired we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus costs.
Last Winter we were e-mailed by Mrs Isabel Adams , who moved into a garden flat in Stretford in January 2012. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative premises in Stretford with a long lease were in the region of £242,600. The average amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2093. Given that there were 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including expenses.