There is no doubt about it a leasehold property in Stafford is a wasting asset as a result of the diminishing lease term. Where the lease has, over one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Stafford will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Stafford with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
The conveyancing solicitors that we work with procure Stafford 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.
Michael was the the leasehold proprietor of a 2 bedroom flat in Stafford being sold with a lease of a little over sixty years remaining. Michael on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. J Roberts , who acquired a studio apartment in Stafford in September 2005. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical premises in Stafford with a long lease were valued about £280,000. The average ground rent payable was £55 collected yearly. The lease terminated in 2104. Considering the 78 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Last Summer we were approach by Mr and Mrs. O Lee , who completed a newly refurbished flat in Stafford in June 2000. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Similar premises in Stafford with a long lease were valued about £191,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease end date was on 27 October 2084. Given that there were 58 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus professional charges.