Main reasons to start your Stockport lease extension

Main reasons to commence your Stockport lease extension today:

A Stockport lease depreciates with the years remaining on the lease.

When it comes to long leasehold premises in Stockport, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Anyone in Stockport with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years remaining, under the current legislation the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

Stockport property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not finance a property on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This will be problematic once you come to market or refinance your flat as it will be practically unmortgageable. Even though you may not have an immediate plan to sell but when you do your purchaser must wait 2 years before being able to start the legal procedures for a lease extension.

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

Regardless 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 experience and the close ties they enjoy with Stockport valuers.

Stockport Lease Extension Example Cases:

Rachael, Stockport, Greater Manchester,

In the wake of 6 months of unsuccessful discussions with the freeholder of her garden apartment in Stockport, Rachael started the lease extension process as the 80 year mark was quickly coming. The transaction was finalised in April 2008. The landlord’s fees were kept to an absolute minimum.

Stockport case:

Ms Jasmine Simon owned a purpose-built flat in Stockport in April 2011. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Similar properties in Stockport with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease end date was on 9 November 2077. Having 51 years unexpired we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including expenses.

Stockport case:

Ms F Williams moved into a recently refurbished apartment in Stockport in February 2001. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative properties in Stockport with a long lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced yearly. The lease ran out in 2088. Having 62 years outstanding we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including fees.