The market value of Great Stanmore leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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. |
| 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. |
The lawyers that we work with undertake Great Stanmore lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy negotiations with the landlord of her one bedroom apartment in Great Stanmore, Chelsea initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was concluded in February 2009. The landlord’s charges were kept to an absolute minimum.
Dr K Jones owned a purpose-built apartment in Great Stanmore in April 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Great Stanmore with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected yearly. The lease end date was in 2105. Given that there were 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
An example of a Lease Extension matter before the tribunal for a Great Stanmore property is 27B Hillside in February 2010. the resulting premium, all other aspects of the valuation having been agreed between the parties was set at £8,250 This case affected 1 flat. The remaining number of years on the lease was 70.25 years.