Trafford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Trafford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Trafford you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Trafford can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Trafford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Ben, started to get near to the eighty-year mark with the lease on his first floor flat in Trafford. Having bought his home twenty years ago, the unexpired term was of little importance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Ben extended the lease just in the nick of time in March. Ben and the freeholder subsequently settled on an amount of £5,000 . If he had missed the deadline, the premium would have increased by a minimum £925.
Last year we were contacted by Mr Evan Scott , who took over the lease of a one bedroom apartment in Trafford in March 2004. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Trafford with a long lease were valued about £290,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out on 8 August 2106. Having 80 years outstanding we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.
In 2009 we were approached by Mr and Mrs. P Simon who, having was assigned a lease of a first floor flat in Trafford in March 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Trafford with a long lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2086. Given that there were 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.