Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Stalybridge. Clearly, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Stalybridge have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful attention before delaying your Stalybridge lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold residencies in Stalybridge 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Stalybridge leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her leasehold flat in Stalybridge, Isobel started the lease extension process as the eighty year threshold was swiftly coming. The legal work completed in April 2014. The freeholder’s costs were negotiated to below 550 GBP.
In 2012 we were contacted by Dr O Harris who, having owned a newly refurbished flat in Stalybridge in June 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Stalybridge with an extended lease were worth £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expiry date was in 2098. Given that there were 73 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2014 we were called by Mr Hunter Bennett who, having owned a garden flat in Stalybridge in May 1998. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable properties in Stalybridge with a long lease were worth £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease ended on 16 March 2078. Given that there were 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including professional charges.