When it comes to long leasehold property in Trafford, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years left. Residents in Trafford with a lease nearing 81 years unexpired should seriously consider extending it without delay. When a lease has under 80 years remaining, under the current Act the landlord can calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Trafford with over one hundred years left on the lease are often referred to as ‘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 |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander |
Irrespective of whether you are a tenant or a freeholder in Trafford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trafford valuers.
Finley was the the leasehold owner of a conversion apartment in Trafford on the market with a lease of fraction over fifty eight years unexpired. Finley informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Finley to invoke his statutory right. Finley obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr D Hill bought a studio flat in Trafford in June 2011. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Trafford with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired in 2090. Considering the 64 years as a residual term we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including legals.
In 2009 we were contacted by Dr Kate Dupont who, having acquired a first floor flat in Trafford in February 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Trafford with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish on 23 August 2101. Given that there were 75 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.