On the balance of probabilities where you own a flat in Stockport you actually own a long leasehold interest over your property
Leasehold premises in Stockport with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Stockport can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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 Stockport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Riley, came critically near to the eighty-year threshold with the lease on his one bedroom apartment in Stockport. In buying his home two decades ago, the unexpired term was of little significance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Riley arranged for a lease extension just under the wire last September. Riley and the freeholder via the management company in the end agreed on a premium of £5,500 . If the lease had slid below 80 years, the sum would have gone up by a minimum £1,075.
In 2014 we were phoned by Mr and Mrs. F Khan who, having moved into a basement flat in Stockport in October 2007. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in Stockport with an extended lease were in the region of £254,200. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2076. Given that there were 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 plus expenses.
Last Autumn we were approach by Dr Harrison Gray , who completed a one bedroom apartment in Stockport in June 2004. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Stockport with an extended lease were in the region of £210,600. The average amount of ground rent was £45 collected per annum. The lease ran out on 25 January 2087. Taking into account 62 years outstanding we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including costs.