Unfortunately that a Stretford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Stretford property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. The majority of flat owners in Stretford will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Stretford leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October David, came seriously close to the eighty-year mark with the lease on his leasehold flat in Stretford. Having purchased his home two decades ago, the unexpired term was of little interest. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. David extended the lease just in the nick of time last May. David and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the amount would have increased by at least £1,150.
Dr W Cook owned a purpose-built flat in Stretford in September 2000. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in Stretford with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 billed yearly. The lease concluded on 5 November 2092. Having 67 years outstanding we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including legals.
Last Christmas we were contacted by Mr and Mrs. I Jones , who acquired a purpose-built flat in Stretford in May 2006. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Stretford with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2103. Considering the 78 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.