The re-sale value of a leasehold property in Stafford depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded prior to the eighty year threshold. Current legislation enables Stafford qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than 100 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 premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Stafford,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stafford valuers.
Two years ago Nathan, came critically close to the 80-year threshold with the lease on his studio flat in Stafford. Having bought his home 19 years previously, the lease term was of minimal importance. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Nathan extended the lease at the eleventh hour in July. Nathan and the freeholder in the end agreed on an amount of £5,500 . If the lease had dropped below 80 years, the figure would have increased by at least £1,075.
Last year we were phoned by Mr F Kelly , who purchased a one bedroom flat in Stafford in October 2003. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Identical residencies in Stafford with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed on 2 August 2096. Taking into account 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2013 we were approached by Ms F Bonnet who, having completed a studio apartment in Stafford in June 1996. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical homes in Stafford with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 collected quarterly. The lease ended in 2076. Considering the 51 years unexpired we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus professional charges.