Great Stanmore leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Great Stanmore will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Great Stanmore with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service gives you better control over the value of your Great Stanmore leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted correspondence with the freeholder of her studio flat in Great Stanmore, Samantha started the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was concluded in April 2010. The freeholder’s fees were kept to an absolute minimum.
Mr William Adams owned a garden apartment in Great Stanmore in April 2010. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Great Stanmore with an extended lease were worth £232,800. The average amount of ground rent was £45 collected monthly. The lease concluded in 2091. Taking into account 65 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
An example of a Lease Extension decision for a Great Stanmore residence 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 was in relation to 1 flat. The unexpired term as at the valuation date was 70.25 years.