With a residential leasehold property in Stretford, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule 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 Stretford with a lease approaching 81 years left should seriously think of extending it sooner rather than later. When a lease has below eighty years left, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Stretford with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Engaging our service gives you better control over the value of your Stretford leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Aaron, came perilously near to the 80-year mark with the lease on his first floor apartment in Stretford. In buying his flat two decades ago, the length of the lease was of no bearing. Fortunately, he recognised he needed to take action soon on a lease extension. Aaron was able to extend his lease just in the nick of time in September. Aaron and the freeholder ultimately agreed on sum of £5,500 . If the lease had slid below 80 years, the sum would have gone up by at least £1,150.
In 2013 we were contacted by Dr Hollie Collins who, having purchased a one bedroom apartment in Stretford in November 2007. The question was if we could estimate the premium would be for a 90 year lease extension. Identical homes in Stretford with an extended lease were in the region of £260,000. The average ground rent payable was £50 collected per annum. The lease finished on 8 February 2098. Given that there were 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
In 2011 we were e-mailed by Ms E André who, having moved into a one bedroom flat in Stretford in June 1997. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable flats in Stretford with an extended lease were valued about £261,600. The average amount of ground rent was £60 collected annually. The lease ended on 17 January 2078. Considering the 52 years unexpired we approximated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including expenses.