Unfortunately that a Stretford residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Stretford property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Stretford will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Stretford with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Trailing lengthy correspondence with the landlord of her basement flat in Stretford, Maisie started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension was concluded in August 2011. The freeholder’s fees were restricted to slightly above 450 GBP.
Last year we were approach by Dr Joseph Wilson , who owned a recently refurbished flat in Stretford in February 1998. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar homes in Stretford with an extended lease were worth £183,600. The average amount of ground rent was £65 invoiced annually. The lease lapsed in 2083. Considering the 57 years outstanding we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.
In 2012 we were called by Mr and Mrs. W Clarke who, having was assigned a lease of a basement flat in Stretford in July 2001. The question was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Identical residencies in Stretford with a long lease were worth £245,000. The average ground rent payable was £50 collected per annum. The lease came to a finish in 2094. Taking into account 68 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.