Trafford Park leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Trafford Park will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Trafford Park with in excess of one hundred years remaining 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Trafford Park 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 conveyancer we work with provide it.
In the wake of 6 months of lengthy discussions with the landlord of her garden apartment in Trafford Park, Naomi started the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension was concluded in October 2005. The landlord’s costs were kept to an absolute minimum.
In 2011 we were e-mailed by Mr and Mrs. H Petit who, having purchased a first floor flat in Trafford Park in July 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar premises in Trafford Park with 100 year plus lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease came to a finish on 22 November 2092. Having 66 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Last Summer we were e-mailed by Mr E Howard , who owned a one bedroom apartment in Trafford Park in July 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Trafford Park with a long lease were valued about £275,000. The mid-range ground rent payable was £55 collected per annum. The lease termination date was on 24 January 2103. Considering the 77 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.