Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Stoke Newington. Inevitably, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Stoke Newington have the right to extend the lease for an additional 90 years under statute. Please give due consideration before putting off your Stoke Newington lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Stoke Newington can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Stoke Newington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Kai, came critically close to the eighty-year mark with the lease on his leasehold apartment in Stoke Newington. In buying his property twenty years ago, the unexpired term was of no importance. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Kai extended the lease at the eleventh hour last August. Kai and the landlord subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £950.
In 2014 we were approached by Mr and Mrs. U Turner who, having owned a recently refurbished apartment in Stoke Newington in March 1998. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative properties in Stoke Newington with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 14 July 2102. Considering the 77 years outstanding we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
An example of a Lease Extension case for a Stoke Newington property 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 was in relation to 1 flat.