On the balance of probabilities if you own a flat in Stretford you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers 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 conveyancing solicitor we work with provide it.
Last Winter Henry, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Stretford. In buying his flat two decades ago, the unexpired term was of minimal significance. by good luck, he noticed he needed to take action soon on a lease extension. Henry extended the lease at the eleventh hour in June. Henry and the freeholder via the managing agents subsequently settled on the final figure of £6,000 . If he not met the deadline, the sum would have increased by a minimum £1,075.
Dr Leo Howard acquired a one bedroom apartment in Stretford in January 2010. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Stretford with a long lease were in the region of £227,800. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out on 19 August 2091. Taking into account 65 years outstanding we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
In 2009 we were called by Mrs C Nguyen who, having acquired a basement apartment in Stretford in February 2011. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical flats in Stretford with a long lease were valued around £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease expired on 27 October 2102. Having 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.