Staindrop residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Engaging our service will provide you better control over the value of your Staindrop leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jamie was the the leasehold owner of a 2 bedroom apartment in Staindrop being marketed with a lease of just over 59 years unexpired. Jamie on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and secured satisfactory deal informally and sell the flat.
In 2013 we were contacted by Mr Sebastian Collins who, having owned a one bedroom flat in Staindrop in January 2011. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable properties in Staindrop with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease ended on 18 October 2093. Taking into account 67 years left we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including expenses.
Last month we were e-mailed by Mr and Mrs. S David , who acquired a recently refurbished flat in Staindrop in August 2001. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Staindrop with a long lease were in the region of £206,200. The mid-range ground rent payable was £60 billed quarterly. The lease expired in 2082. Having 56 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.