When it comes to domestic leasehold premises in Stockport, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Stockport with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When a lease has under 80 years remaining, under the current statute the freeholder can calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Stockport with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Stockport can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring 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 October Ali, came critically close to the 80-year threshold with the lease on his garden flat in Stockport. Having purchased his property twenty years ago, the unexpired term was of little importance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Ali was able to extend his lease at the eleventh hour last March. Ali and the landlord in the end settled on the final figure of £5,000 . If the lease had dropped lower than eighty years, the figure would have escalated by at least £1,075.
In 2012 we were e-mailed by Mr and Mrs. F Edwards who, having moved into a first floor flat in Stockport in September 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in Stockport with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 billed annually. The lease finished in 2086. Taking into account 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of legals.
Dr K Turner took over the lease of a purpose-built apartment in Stockport in March 2000. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar flats in Stockport with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired in 2097. Considering the 71 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.