Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Stallingborough. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Stallingborough have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before putting off your Stallingborough lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Using our service will provide you better control over the value of your Stallingborough leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harry was the the leasehold proprietor of a high value apartment in Stallingborough being marketed with a lease of a little over 72 years outstanding. Harry informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Mr J Garcia completed a first floor apartment in Stallingborough in July 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative flats in Stallingborough with a long lease were valued about £245,000. The mid-range ground rent payable was £50 invoiced yearly. The lease terminated on 11 May 2093. Given that there were 68 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Spring we were approach by Ms Isabelle Girard , who moved into a garden flat in Stallingborough in August 2012. The question was if we could approximate the price would be to extend the lease by 90 years. Similar properties in Stallingborough with an extended lease were worth £285,000. The average amount of ground rent was £55 collected per annum. The lease ended on 27 July 2104. Taking into account 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.