Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Stockport. Clearly, the length of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Stockport have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give due deliberation before delaying your Stockport lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Stockport with over 100 years outstanding on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Stockport leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dexter owned a 2 bedroom apartment in Stockport being marketed with a lease of just over fifty eight years outstanding. Dexter informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Christmas we were phoned by Mr and Mrs. Y François , who acquired a garden flat in Stockport in September 1997. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical premises in Stockport with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated in 2097. Given that there were 71 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. U Torres was assigned a lease of a one bedroom flat in Stockport in April 2010. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Stockport with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish on 8 January 2077. Having 51 years as a residual term we estimated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of fees.