The re-sale value of a leasehold property in Trafford depends on how many years the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised ahead of the eighty year mark. Statute enables Trafford qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Trafford with over 100 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 buying the freehold unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure Trafford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her ground floor flat in Trafford, Paige initiated the lease extension process as the eighty year deadline was rapidly approaching. The lease extension completed in November 2010. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were called by Mr and Mrs. G Kelly , who bought a basement flat in Trafford in July 2010. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical flats in Trafford with an extended lease were valued around £245,000. The average amount of ground rent was £45 collected every twelve months. The lease finished on 12 November 2093. Taking into account 68 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Ms G Fournier completed a garden flat in Trafford in March 1995. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical residencies in Trafford with a long lease were worth £280,000. The average ground rent payable was £55 billed every twelve months. The lease finished on 14 October 2103. Considering the 78 years left we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.