Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Stallingborough. Clearly, the term of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Stallingborough have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Stallingborough lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold premises in Stallingborough with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Stallingborough,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stallingborough valuers.
In 2014 Lucas, started to get near to the eighty-year mark with the lease on his first floor flat in Stallingborough. In buying his property 19 years previously, the lease term was of little importance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Lucas was able to extend his lease at the eleventh hour last May. Lucas and the landlord in the end settled on sum of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £875.
Last Summer we were approach by Mr Arthur Lefebvre , who completed a purpose-built apartment in Stallingborough in May 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Stallingborough with a long lease were worth £208,200. The average ground rent payable was £65 billed quarterly. The lease finished in 2086. Considering the 61 years unexpired we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of costs.
Dr Theo Kelly acquired a garden flat in Stallingborough in February 2007. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparative flats in Stallingborough with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced yearly. The lease termination date was in 2097. Taking into account 72 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.