Great Stanmore leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Great Stanmore will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Great Stanmore with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the freeholder of her garden apartment in Great Stanmore, Rachel started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The transaction was finalised in September 2007. The freeholder’s fees were kept to an absolute minimum.
Last month we were called by Dr N Jackson , who moved into a garden flat in Great Stanmore in March 2009. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical residencies in Great Stanmore with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease concluded in 2104. Taking into account 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus 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 related to 1 flat. The unexpired residue of the current lease was 70.25 years.