Staindrop leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be payable. Flat owners in Staindrop will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Staindrop 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 conveyancer we work with provide it.
Jayden owned a high value apartment in Staindrop being marketed with a lease of a little over 72 years outstanding. Jayden on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2011 we were contacted by Mr Y Lefebvre who, having bought a one bedroom flat in Staindrop in June 1998. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable flats in Staindrop with 100 year plus lease were valued about £257,800. The average ground rent payable was £65 billed per annum. The lease finished in 2091. Having 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including costs.
Mr F Jones was assigned a lease of a garden apartment in Staindrop in November 2009. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Staindrop with a long lease were worth £191,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded in 2080. Taking into account 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of costs.