The closer a domestic lease in Staines gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Staines will meet the qualifying criteria; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Staines leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold proprietor of a studio apartment in Staines being sold with a lease of fraction over 59 years outstanding. Oliver on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. J André who, having acquired a basement flat in Staines in August 1998. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Staines with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded in 2096. Taking into account 70 years remaining we approximated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Staines property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired term as at the valuation date was 82.93 years.