The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Stansted may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Stansted lease extension. Shelving the costs now simply increases the amount you will eventually have to pay for a lease extension.
Leasehold premises in Stansted with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Stansted leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Harry, came very close to the eighty-year mark with the lease on his ground floor flat in Stansted. Having bought his home two decades ago, the lease term was of no significance. Thankfully, he realised he needed to take action soon on Extending the lease. Harry was able to extend his lease just under the wire in May. Harry and the landlord who owned the flat above in the end settled on an amount of £6,000 . If the lease had dipped lower than eighty years, the amount would have gone up by at least £875.
Mr G André moved into a first floor flat in Stansted in March 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Stansted with a long lease were valued around £208,200. The average amount of ground rent was £65 collected monthly. The lease came to a finish in 2086. Given that there were 61 years left we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including legals.
Last August we were phoned by Mr and Mrs. U Pérez , who acquired a one bedroom apartment in Stansted in February 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Stansted with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 billed per annum. The lease ran out on 23 April 2097. Considering the 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.