The closer a residential lease in Stalham nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Stalham will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service will provide you better control over the value of your Stalham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Isaac, started to get close to the 80-year mark with the lease on his basement apartment in Stalham. In buying his home two decades ago, the unexpired term was of little concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Isaac arranged for a lease extension just ahead of time last May. Isaac and the freeholder eventually agreed on the final figure of £6,000 . If the lease had dipped below eighty years, the price would have become more exhorbitant by at least £1,000.
Last Christmas we were called by Ms I White , who took over the lease of a recently refurbished flat in Stalham in November 1997. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable homes in Stalham with a long lease were in the region of £242,600. The average ground rent payable was £45 billed yearly. The lease lapsed on 27 September 2092. Given that there were 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus fees.
Last July we were e-mailed by Mr and Mrs. C Campbell , who bought a purpose-built flat in Stalham in November 2004. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Stalham with a long lease were in the region of £280,000. The average ground rent payable was £55 billed every twelve months. The lease terminated in 2103. Having 78 years as a residual term we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.