There is no doubt about it a leasehold property in Stotfold is a wasting asset as a result of the shortening lease. Where the lease has, beyond 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Stotfold will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common 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 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Stotfold can be a difficult process. We recommend you secure guidance 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 in-depth market knowledge procuring Stotfold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel was the the leasehold owner of a conversion flat in Stotfold being sold with a lease of a few days over fifty eight years outstanding. Gabriel on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. P Carter who, having moved into a garden flat in Stotfold in February 1997. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable residencies in Stotfold with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease termination date was on 19 May 2085. Taking into account 60 years outstanding we estimated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 not including fees.
Dr Oscar Cox purchased a one bedroom flat in Stotfold in July 1999. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar homes in Stotfold with 100 year plus lease were valued about £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated in 2105. Taking into account 80 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.