When it comes to domestic leasehold premises 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 long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years left. Leasehold owners in Stretford with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the current Act the freeholder can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Stretford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Stretford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aaron, started to get near to the 80-year mark with the lease on his garden flat in Stretford. In buying his flat two decades ago, the length of the lease was of little relevance. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Aaron was able to extend his lease just ahead of time last January. Aaron and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he had missed the deadline, the sum would have increased by at least £975.
Dr Teddy Nelson completed a studio apartment in Stretford in October 1999. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable properties in Stretford with an extended lease were worth £173,800. The average amount of ground rent was £60 collected monthly. The lease ran out on 19 August 2080. Considering the 55 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
In 2010 we were e-mailed by Dr S Díaz who, having acquired a garden apartment in Stretford in June 2008. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable residencies in Stretford with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out on 9 March 2091. Having 66 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.