Unfortunately that a Stalham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Stalham property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Stalham will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Stalham with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Stalham can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Stalham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden was the the leasehold proprietor of a 2 bedroom apartment in Stalham on the market with a lease of fraction over 59 years unexpired. Aiden informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert advice and secured satisfactory deal informally and sell the property.
In 2013 we were phoned by Mr Lucas Thompson who, having owned a garden apartment in Stalham in January 2000. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical residencies in Stalham with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease ended on 10 September 2085. Considering the 60 years left we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus expenses.
Dr Arthur Moore took over the lease of a first floor apartment in Stalham in August 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Stalham with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2096. Considering the 71 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.