The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Stapleton may extend the lease for a further ninety years under statute. Do think carefully before delaying your Stapleton lease extension. Postponing that expense today simply increases the amount you will ultimately be required to pay to extend the lease.
Leasehold residencies in Stapleton with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with undertake Stapleton 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.
Last October Leon, started to get near to the eighty-year threshold with the lease on his studio flat in Stapleton. Having purchased his flat 19 years previously, the length of the lease was of no concern. Luckily, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Leon extended the lease just under the wire in July. Leon and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If the lease had descended below 80 years, the premium would have escalated by at least £875.
Last Autumn we were called by Mr V Jones , who owned a purpose-built apartment in Stapleton in January 1997. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Stapleton with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 11 February 2097. Considering the 72 years left we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of fees.
In 2011 we were e-mailed by Mr Mason Rose who, having took over the lease of a ground floor apartment in Stapleton in November 2005. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Stapleton with an extended lease were worth £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 8 August 2086. Having 61 years unexpired we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.