Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Stoke Newington. Inevitably, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Stoke Newington have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give careful attention before delaying your Stoke Newington lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Lease extensions in Stoke Newington can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge 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.
Last October Nathaniel, started to get close to the 80-year threshold with the lease on his basement apartment in Stoke Newington. Having purchased his property twenty years previously, the unexpired term was of no importance. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Nathaniel arranged for a lease extension just under the wire last May. Nathaniel and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If the lease had gone to less than 80 years, the premium would have escalated by a minimum £1,100.
In 2014 we were approached by Mr and Mrs. U Dupont who, having completed a studio apartment in Stoke Newington in November 2000. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Stoke Newington with a long lease were valued about £183,600. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish in 2082. Given that there were 57 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
An example of a Lease Extension case for a Stoke Newington flat 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.