Unfortunately that a Stoke Newington residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Stoke Newington property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Most flat owners in Stoke Newington will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom 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 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Stoke Newington can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with 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.
During the course of the last few months George, started to get close to the eighty-year threshold with the lease on his first floor flat in Stoke Newington. In buying his property two decades ago, the lease term was of no bearing. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. George arranged for a lease extension just in the nick of time last June. George and the landlord ultimately agreed on a premium of £5,000 . If the lease had slipped lower than eighty years, the figure would have escalated by a minimum £1,150.
Mr and Mrs. C Walker acquired a basement apartment in Stoke Newington in September 2011. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative residencies in Stoke Newington with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected every twelve months. The lease finished on 22 January 2094. Considering the 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension decision 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 affected 1 flat.