The only way is down when it comes to Trafford Park lease terms. Trafford Park flats that have a lease term fewer than 80 years will reduce in market price even faster, and the cost of extending your lease will rise.
Leasehold residencies in Trafford Park with in excess of 100 years unexpired 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Trafford Park leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a 2 bedroom flat in Trafford Park being marketed with a lease of a few days over 72 years outstanding. Connor on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Last Winter we were contacted by Dr V Rogers , who completed a one bedroom apartment in Trafford Park in April 1998. We are asked if we could estimate the price would be for a ninety year lease extension. Identical flats in Trafford Park with a long lease were worth £270,000. The average amount of ground rent was £55 billed quarterly. The lease termination date was in 2100. Taking into account 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Last Autumn we were contacted by Dr Erin Morgan , who completed a first floor flat in Trafford Park in February 1996. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Trafford Park with 100 year plus lease were valued about £168,800. The average amount of ground rent was £60 billed quarterly. The lease lapsed on 17 July 2080. Having 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.