As the length of the unexpired term of a Trafford residential lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 99 years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Trafford will qualify for this right; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Trafford,the lease extension lawyers 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.
Subsequent to unsuccessful correspondence with the landlord of her one bedroom flat in Trafford, Molly initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work was concluded in July 2007. The landlord’s charges were restricted to about 700 GBP.
In 2010 we were phoned by Mr and Mrs. B Anderson who, having purchased a one bedroom apartment in Trafford in August 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Trafford with a long lease were in the region of £246,800. The average amount of ground rent was £60 collected monthly. The lease ran out in 2076. Having 50 years outstanding we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including costs.
Dr N Lefèvre bought a one bedroom apartment in Trafford in February 2003. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Trafford with 100 year plus lease were valued around £208,200. The mid-range ground rent payable was £65 billed monthly. The lease concluded in 2087. Having 61 years outstanding we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.