With a long leasehold premises in Stamford Hill, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years remaining. Residents in Stamford Hill with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Stamford Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Oliver, came seriously close to the eighty-year threshold with the lease on his first floor flat in Stamford Hill. Having bought his home 18 years ago, the lease term was of no relevance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Oliver extended the lease just in the nick of time last April. Oliver and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If he had missed the deadline, the premium would have increased by a minimum £950.
In 2012 we were called by Ms D Leroy who, having owned a one bedroom apartment in Stamford Hill in July 2012. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative homes in Stamford Hill with a long lease were valued around £250,400. The average ground rent payable was £65 collected yearly. The lease ended in 2089. Having 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of expenses.
An example of a Lease Extension decision for a Stamford Hill residence is Flat 25, Stamford Hill Mansions Stamford Hill in April 2010. The Tribunal therefore determined that the premium to be paid by the lessee to the freeholder for the extension of the lease should be £28,984.00 This case was in relation to 1 flat. The remaining number of years on the lease was 59 years.