As the length of the unexpired term of a Trafford Park residential lease decreases so does its value and therefore the value of your property. If the residual term has, over 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Trafford Park will meet the qualifying criteria; however a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold 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 premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you better control over the value of your Trafford Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her two bedroom apartment in Trafford Park, Abigail commenced the lease extension process as the eighty year threshold was quickly nearing. The transaction was concluded in September 2015. The freeholder’s costs were negotiated to a tad over 600 pounds.
Last Christmas we were approach by Mrs Paige Lee , who completed a studio apartment in Trafford Park in April 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical properties in Trafford Park with a long lease were valued about £218,000. The average amount of ground rent was £45 billed yearly. The lease elapsed in 2088. Given that there were 63 years unexpired we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including expenses.
Mr and Mrs. W Smith was assigned a lease of a purpose-built flat in Trafford Park in January 1998. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable flats in Trafford Park with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated on 13 June 2099. Having 74 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.