Stockport leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Stockport enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Stockport you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Yorkshire Building Society |
The conveyancers 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.
In recent months Jonathan, came seriously near to the eighty-year mark with the lease on his garden apartment in Stockport. Having purchased his home 18 years previously, the length of the lease was of little importance. by good luck, he became aware that he needed to take action soon on a lease extension. Jonathan was able to extend his lease at the eleventh hour in August. Jonathan and the freeholder in the end agreed on the final figure of £5,500 . If the lease had gone lower than 80 years, the premium would have increased by a minimum £1,075.
Mr and Mrs. R González took over the lease of a studio apartment in Stockport in September 1998. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical residencies in Stockport with a long lease were worth £280,000. The mid-range ground rent payable was £55 collected yearly. The lease expiry date was in 2104. Having 78 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
Last Winter we were e-mailed by Mr and Mrs. B Williams , who moved into a first floor apartment in Stockport in June 1996. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar residencies in Stockport with an extended lease were in the region of £186,000. The average amount of ground rent was £65 collected quarterly. The lease lapsed on 1 August 2084. Considering the 58 years remaining we approximated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of fees.