It’s an underpublicised certainty that a Stretford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Stretford property market.Once your lease nears 85ish years, you need to start considering 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 falls below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Stretford will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Stretford with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Stretford can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 Stretford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Ollie, came critically close to the eighty-year mark with the lease on his purpose- built apartment in Stretford. Having purchased his home two decades ago, the length of the lease was of little significance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Ollie arranged for a lease extension at the eleventh hour last May. Ollie and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If he not met the deadline, the figure would have become more costly by at least £1,000.
In 2010 we were called by Mr and Mrs. S Phillips who, having bought a recently refurbished flat in Stretford in February 2003. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Stretford with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2093. Taking into account 69 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Spring we were phoned by Dr O Martinez , who moved into a ground floor apartment in Stretford in March 2001. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparative flats in Stretford with an extended lease were worth £290,000. The mid-range ground rent payable was £60 collected monthly. The lease finished in 2104. Given that there were 80 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.