When it comes to residential leasehold property in Trafford Park, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Trafford Park with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has under 80 years remaining, under the current statute the landlord can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Trafford Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trafford Park valuers.
Half a year ago Oliver, started to get close to the 80-year threshold with the lease on his studio apartment in Trafford Park. In buying his property 19 years previously, the length of the lease was of minimal concern. Luckily, he became aware that he needed to take steps soon on Extending the lease. Oliver was able to extend his lease just under the wire in January. Oliver and the landlord eventually agreed on sum of £6,000 . If he not met the deadline, the sum would have increased by at least £975.
Last March we were phoned by Ms A Parker , who took over the lease of a basement flat in Trafford Park in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Trafford Park with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease expired in 2106. Given that there were 80 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Mr and Mrs. J Clarke purchased a basement apartment in Trafford Park in January 2005. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparative homes in Trafford Park with an extended lease were in the region of £200,800. The average ground rent payable was £65 invoiced monthly. The lease concluded on 2 October 2086. Having 60 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.