Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Trafford. Inevitably, the term of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Trafford have the legal entitlement to extend the lease for a further ninety years under legislation. You should give due consideration before delaying your Trafford lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Trafford with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Trafford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Trafford valuers.
Trailing protracted discussions with the landlord of her ground floor apartment in Trafford, Zoe initiated the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was finalised in May 2008. The landlord’s charges were restricted to slightly above 450 GBP.
Mr and Mrs. B Cook moved into a recently refurbished flat in Trafford in April 2008. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical premises in Trafford with a long lease were in the region of £183,600. The average ground rent payable was £65 invoiced per annum. The lease ended on 26 November 2083. Having 57 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.
Last Autumn we were e-mailed by Dr Andrew Collins , who moved into a studio apartment in Trafford in February 2007. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Trafford with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed yearly. The lease expiry date was in 2094. Considering the 68 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.