As the the remaining lease term of a Stoke Newington domestic lease diminished so does its value and therefore the value of your property. If the lease has, in excess of one hundred years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Stoke Newington will meet the qualifying criteria; that being said a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Stoke Newington 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.
16 months ago Andrew, came very near to the eighty-year mark with the lease on his garden flat in Stoke Newington. Having purchased his home two decades ago, the length of the lease was of minimal relevance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Andrew arranged for a lease extension just under the wire last August. Andrew and the landlord ultimately agreed on an amount of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £925.
Mr Jamie Thomas was assigned a lease of a one bedroom apartment in Stoke Newington in January 2011. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Stoke Newington with 100 year plus lease were valued around £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease lapsed in 2098. Taking into account 72 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a Stoke Newington residence is Lower Flat 16A Beatty Road in September 2012. The premium payable was £13,577. The terms of the lease has been agreed between the Applicants and the First Respondent and the Tribunal did not seek to disturb that agreement. This case related to 1 flat.