It’s a harsh truth that a Staindrop residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Staindrop property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Staindrop will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Staindrop with in excess of one hundred years remaining 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Staindrop leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy discussions with the landlord of her first floor apartment in Staindrop, Holly initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was concluded in March 2014. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. C Rogers owned a one bedroom flat in Staindrop in September 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical homes in Staindrop with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded on 26 May 2105. Having 79 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2013 we were contacted by Dr L Murphy who, having acquired a purpose-built flat in Staindrop in March 1999. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable flats in Staindrop with a long lease were valued about £275,000. The average ground rent payable was £65 collected monthly. The lease terminated in 2094. Considering the 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.