There is no doubt about it a leasehold flat or house in Stalybridge is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Stalybridge will qualify for this right; that being said a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Stalybridge with over 100 years outstanding on the lease are often regarded as a ‘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 to be gained by 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Stalybridge 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.
Trailing lengthy correspondence with the landlord of her studio flat in Stalybridge, Kirsty started the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work completed in July 2011. The landlord’s charges were kept to an absolute minimum.
In 2014 we were approached by Dr S Turner who, having took over the lease of a garden apartment in Stalybridge in March 2009. The question was if we could estimate the price would be for a ninety year lease extension. Comparable flats in Stalybridge with a long lease were valued about £193,400. The average ground rent payable was £65 collected annually. The lease elapsed in 2084. Considering the 59 years left we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.
In 2011 we were approached by Mr and Mrs. J Murphy who, having bought a recently refurbished apartment in Stalybridge in September 2008. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar premises in Stalybridge with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended on 12 August 2095. Having 70 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.