Stockport leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Stockport will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Stockport with in excess of one hundred 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Stockport 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 lawyer we work with provide it.
Owen was the the leasehold owner of a high value flat in Stockport being marketed with a lease of a few days over fifty eight years outstanding. Owen on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert advice and secured satisfactory deal informally and readily saleable.
Last Summer we were contacted by Mrs F Alexander , who moved into a one bedroom flat in Stockport in November 2004. The question was if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Stockport with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded on 20 July 2099. Taking into account 74 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2011 we were phoned by Dr D Nguyen who, having acquired a basement apartment in Stockport in July 2011. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Stockport with an extended lease were valued about £166,400. The average ground rent payable was £60 collected monthly. The lease termination date was on 6 June 2079. Taking into account 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including legals.