The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Trafford may extend the lease for a further ninety years under statute. Do think carefully before delaying your Trafford lease extension. Shelving the costs today simply increases the price you will eventually be required to pay for a lease extension.
Leasehold residencies in Trafford with more than one hundred years unexpired 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Trafford can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer 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.
Two years ago Elijah, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Trafford. Having purchased his home 19 years ago, the lease term was of little relevance. Luckily, he recognised he needed to take action soon on Extending the lease. Elijah arranged for a lease extension just in the nick of time in June. Elijah and the landlord in the end settled on a premium of £6,000 . If the lease had fallen below eighty years, the figure would have become more exhorbitant by a minimum £1,075.
Mr Joseph Brown was assigned a lease of a first floor flat in Trafford in March 1996. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Trafford with a long lease were worth £215,600. The mid-range ground rent payable was £45 collected yearly. The lease expired on 10 January 2087. Given that there were 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including expenses.
Mrs Daisy Bonnet acquired a purpose-built flat in Trafford in June 2001. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Trafford with an extended lease were in the region of £265,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish in 2098. Considering the 73 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.