When it comes to residential leasehold premises in Stockport, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Anyone in Stockport with a lease drawing near to 81 years left should seriously think of extending it sooner than later. Once the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Stockport,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stockport valuers.
Subsequent to unsuccessful negotiations with the freeholder of her basement apartment in Stockport, Laura started the lease extension process just as the lease was approaching the crucial 80-year mark. The transaction was concluded in February 2007. The freeholder’s charges were restricted to a tad over four hundred pounds.
Mrs U Bertrand took over the lease of a first floor apartment in Stockport in October 2003. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable properties in Stockport with a long lease were valued around £186,000. The mid-range ground rent payable was £65 collected every twelve months. The lease finished in 2083. Taking into account 58 years as a residual term we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus professional charges.
Last Christmas we were e-mailed by Ms Samantha Cooper , who purchased a basement apartment in Stockport in March 2008. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Stockport with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease finished on 16 April 2094. Given that there were 69 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.