Trafford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Trafford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Trafford you must see if your lease has between 70 and 90 years remaining. There are good reasons why a Trafford flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Trafford can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Off the back of protracted negotiations with the freeholder of her leasehold apartment in Trafford, Lydia started the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was finalised in November 2014. The landlord’s costs were negotiated to about 550 GBP.
In 2013 we were called by Mr Eliot Collins who, having acquired a basement flat in Trafford in April 2009. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Trafford with a long lease were in the region of £173,800. The average ground rent payable was £65 collected yearly. The lease terminated on 21 September 2080. Having 55 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.
In 2012 we were called by Mrs Zoe White who, having bought a purpose-built flat in Trafford in August 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable properties in Trafford with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed in 2091. Given that there were 66 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.