Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Stamford Bridge. Clearly, the period of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Stamford Bridge have the right to extend the lease for a further ninety years in accordance with legislation. You should give careful attention before putting off your Stamford Bridge lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
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 any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The conveyancing solicitors that we work with undertake Stamford Bridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Aarav, came critically close to the 80-year mark with the lease on his one bedroom apartment in Stamford Bridge. Having bought his flat two decades ago, the unexpired term was of minimal concern. by good luck, he noticed he needed to take action soon on Extending the lease. Aarav extended the lease at the eleventh hour in September. Aarav and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he had missed the deadline, the price would have become more costly by a minimum £1,150.
Last month we were e-mailed by Dr D Morris , who bought a basement apartment in Stamford Bridge in September 1997. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar premises in Stamford Bridge with an extended lease were in the region of £235,200. The average ground rent payable was £45 collected annually. The lease ended on 5 September 2090. Given that there were 66 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Mr Y Cook completed a recently refurbished apartment in Stamford Bridge in July 2009. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Stamford Bridge with an extended lease were worth £275,000. The average ground rent payable was £55 billed yearly. The lease concluded on 20 September 2101. Considering the 77 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.