Why you should start your Stockport lease extension

Main reasons to commence your Stockport lease extension today:

Increase your lease and increase your Stockport property value

Stockport leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Stockport will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.

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

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lenders may not grant a mortgage on a short lease

Lenders do not like short residential leases. You are likely to experience difficulties if you want to sell your flat in Stockport if the remaining term of your lease is under the criteria set by most banks and building societies. Different lenders have different criteria but generally theyrequire an unexpired term of at least seventy years.

What makes us experts in Stockport lease extensions?

Irrespective of whether you are a tenant or a freeholder in Stockport,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stockport valuers.

Stockport Lease Extension Example Cases:

George, Stockport, Greater Manchester

Two years ago George, came perilously close to the eighty-year threshold with the lease on his garden flat in Stockport. In buying his property two decades ago, the lease term was of little relevance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. George was able to extend his lease at the eleventh hour in April. George and the freeholder via the management company ultimately settled on sum of £6,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,025.

Stockport case:

Dr Leo Roux owned a recently refurbished apartment in Stockport in February 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Stockport with a long lease were in the region of £168,800. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 18 January 2081. Taking into account 55 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.

Stockport case:

Dr Austin Bonnet completed a one bedroom apartment in Stockport in June 2006. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in Stockport with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease expired on 20 March 2092. Given that there were 66 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.