It’s a harsh certainty that a Stalybridge residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Stalybridge property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Stalybridge 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 timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Stalybridge with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Stalybridge can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 in-depth market knowledge procuring Stalybridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn owned a studio flat in Stalybridge being marketed with a lease of a little over fifty eight years left. Finn on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Mr and Mrs. C Girard completed a studio apartment in Stalybridge in May 2011. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Stalybridge with an extended lease were worth £245,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired on 12 April 2093. Taking into account 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Last Spring we were phoned by Mr R Harris , who purchased a basement flat in Stalybridge in April 2007. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar premises in Stalybridge with an extended lease were valued about £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated on 17 March 2104. Taking into account 79 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.