The market value of a leasehold property in Stapleton depends on how long the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed in advance of the 80 year cut off point. Statute enables Stapleton qualifying lessees to an additional term of 90 years over and above the remaining term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Stapleton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her garden flat in Stapleton, Sophia initiated the lease extension process as the eighty year mark was fast coming. The legal work completed in August 2014. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. L Edwards , who completed a garden apartment in Stapleton in November 2011. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Stapleton with an extended lease were worth £189,000. The average ground rent payable was £55 billed monthly. The lease lapsed in 2078. Taking into account 53 years unexpired we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.
Dr Hollie Laurent acquired a one bedroom flat in Stapleton in June 2003. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative homes in Stapleton with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £45 collected annually. The lease elapsed in 2098. Having 73 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.