When it comes to residential leasehold premises in Stanford Le Hope, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years remaining. Residents in Stanford Le Hope with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the relevant statute the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you enhanced control over the value of your Stanford Le Hope leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Daniel, started to get near to the eighty-year threshold with the lease on his leasehold flat in Stanford Le Hope. Having bought his property two decades ago, the unexpired term was of little concern. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Daniel arranged for a lease extension at the eleventh hour last March. Daniel and the freeholder ultimately settled on a premium of £5,000 . If the lease had descended below 80 years, the premium would have gone up by a minimum £975.
Last Autumn we were phoned by Mr and Mrs. S Vincent , who was assigned a lease of a purpose-built apartment in Stanford Le Hope in March 2001. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparative properties in Stanford Le Hope with 100 year plus lease were valued about £198,800. The average amount of ground rent was £55 collected annually. The lease lapsed on 24 February 2080. Taking into account 55 years outstanding we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.
Last Autumn we were contacted by Dr E Garcia , who took over the lease of a garden flat in Stanford Le Hope in April 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Stanford Le Hope with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed annually. The lease concluded on 15 April 2100. Considering the 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.