Stanley leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Leasehold owners in Stanley will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Stanley with more than 100 years remaining 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Stanley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanley valuers.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her first floor apartment in Stanley, Katherine started the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension was concluded in July 2015. The landlord’s costs were restricted to less than 650 GBP.
Mrs H Rose owned a one bedroom flat in Stanley in May 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Stanley with a long lease were in the region of £260,000. The average ground rent payable was £50 billed every twelve months. The lease expired on 28 March 2096. Taking into account 72 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2013 we were called by Mr James Alexander who, having was assigned a lease of a studio apartment in Stanley in March 1995. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparable flats in Stanley with 100 year plus lease were in the region of £261,600. The average amount of ground rent was £60 billed every twelve months. The lease expiry date was on 15 June 2076. Having 52 years remaining we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 not including legals.