Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Trafford Park. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Trafford Park have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. You should give due consideration before putting off your Trafford Park lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold properties in Trafford Park with over 100 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Trafford Park,the lease extension solicitors 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.
Following unsuccessful discussions with the freeholder of her ground floor apartment in Trafford Park, Grace initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work was concluded in January 2005. The freeholder’s fees were restricted to under four hundred pounds.
Mr Ollie Gray moved into a one bedroom flat in Trafford Park in March 2002. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical residencies in Trafford Park with 100 year plus lease were valued about £176,200. The average amount of ground rent was £65 invoiced per annum. The lease lapsed on 28 January 2081. Taking into account 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus expenses.
Last January we were called by Mr and Mrs. B White , who moved into a purpose-built flat in Trafford Park in May 2012. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Trafford Park with an extended lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 7 January 2092. Considering the 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.