The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Great Stanmore have the right to extend the lease for a further 90 years under statute. Please give careful consideration before delaying your Great Stanmore lease extension. Postponing that expense now simply increases the amount you will eventually have to pay to extend the lease.
Leasehold premises in Great Stanmore with over one hundred years left on the lease are sometimes regarded as a ‘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 warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Great Stanmore,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Stanmore valuers.
In the wake of eight months of protracted discussions with the freeholder of her one bedroom apartment in Great Stanmore, Abbie commenced the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension completed in August 2005. The landlord’s charges were kept to an absolute minimum.
Last November we were called by Mrs L Dupont , who owned a basement flat in Great Stanmore in November 1997. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar premises in Great Stanmore with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease concluded in 2096. Having 71 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
An example of a Lease Extension case for a Great Stanmore premises 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 residue of the current lease was 70.25 years.