Stretford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Stretford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Stretford you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Stretford leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Stretford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago David, came dangerously near to the 80-year mark with the lease on his first floor apartment in Stretford. In buying his property twenty years previously, the unexpired term was of minimal significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. David arranged for a lease extension just in the nick of time in July. David and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have escalated by at least £850.
In 2009 we were phoned by Mr T Hernández who, having acquired a recently refurbished apartment in Stretford in February 1996. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable flats in Stretford with 100 year plus lease were valued about £200,800. The average amount of ground rent was £65 collected annually. The lease terminated on 15 February 2086. Given that there were 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus costs.
In 2014 we were called by Dr J Khan who, having owned a first floor flat in Stretford in July 1999. We are asked if we could approximate the price would be for a ninety year lease extension. Similar flats in Stretford with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed in 2097. Considering the 71 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.