It’s a harsh certainty that a Stalham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Stalham property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most leasehold owners in Stalham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Stalham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stalham valuers.
Off the back of protracted discussions with the freeholder of her two bedroom flat in Stalham, Hollie started the lease extension process as the eighty year threshold was fast coming. The legal work was finalised in February 2009. The landlord’s charges were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. A Roux who, having was assigned a lease of a one bedroom flat in Stalham in June 2006. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Stalham with a long lease were valued about £285,000. The average ground rent payable was £55 collected per annum. The lease expiry date was in 2104. Taking into account 79 years outstanding we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
Last Christmas we were phoned by Dr Jordan White , who owned a studio apartment in Stalham in October 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical homes in Stalham with a long lease were worth £193,400. The mid-range amount of ground rent was £65 billed yearly. The lease came to a finish in 2084. Considering the 59 years remaining we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus costs.