Why you should start your Stockport lease extension

Why you should start your Stockport lease extension today:

Increase your lease and increase your Stockport property value

It’s an underpublicised truth that a Stockport residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Stockport property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most leasehold owners in Stockport will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may decide not to lend on a short lease

Mortgage lenders have set criteria when lending funds secured on leasehold homes. Some will simply refuse lend at all once the residual lease term slips under a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below 75 years as adequate security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your Stockport home.

Get in touch with one of our Stockport lease extension solicitors or enfranchisement solicitors

Retaining our service gives you enhanced control over the value of your Stockport leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Stockport Lease Extension Case Studies:

Rebecca, Stockport, Greater Manchester,

After protracted negotiations with the freeholder of her one bedroom apartment in Stockport, Rebecca commenced the lease extension process as the eighty year mark was swiftly coming. The transaction was finalised in October 2014. The landlord’s costs were negotiated to about 700 GBP.

Stockport case:

Last Spring we were called by Mrs Jasmine Collins , who purchased a purpose-built flat in Stockport in August 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Stockport with 100 year plus lease were worth £265,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish in 2100. Taking into account 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.

Stockport case:

Dr V Lambert purchased a basement apartment in Stockport in November 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Stockport with a long lease were valued around £166,400. The average amount of ground rent was £60 billed monthly. The lease lapsed in 2080. Taking into account 54 years left we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.