Stoke Newington leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Stoke Newington will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Stoke Newington with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Stoke Newington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her leasehold apartment in Stoke Newington, Anna started the lease extension process as the eighty year deadline was rapidly advancing. The lease extension was concluded in May 2005. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Mr and Mrs. U Wright who, having acquired a ground floor apartment in Stoke Newington in February 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable homes in Stoke Newington with a long lease were valued around £193,400. The mid-range ground rent payable was £65 collected per annum. The lease ended on 24 August 2084. Having 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal 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.