Stafford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Stafford tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Stafford you would be well advised to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Stafford flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Stafford with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Stafford can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Stafford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jacob owned a high value apartment in Stafford being sold with a lease of just over sixty years remaining. Jacob on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2011 we were phoned by Dr P Moore who, having completed a one bedroom flat in Stafford in January 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable premises in Stafford with a long lease were worth £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease expired in 2080. Having 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus expenses.
Last month we were called by Mr and Mrs. N Miller , who completed a studio flat in Stafford in April 2004. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative homes in Stafford with a long lease were valued around £227,800. The average ground rent payable was £45 billed yearly. The lease expired on 12 October 2091. Having 65 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.