The market value of a leasehold property in Stamford Bridge depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year threshold. Current legislation entitles Stamford Bridge qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Stamford Bridge with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Stamford Bridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Henry owned a conversion flat in Stamford Bridge being sold with a lease of a few days over 59 years remaining. Henry on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Dr Abbie Anderson took over the lease of a one bedroom apartment in Stamford Bridge in July 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical premises in Stamford Bridge with an extended lease were in the region of £220,400. The average ground rent payable was £45 invoiced per annum. The lease ended in 2090. Having 64 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.
Last month we were phoned by Dr Tyler Taylor , who was assigned a lease of a first floor flat in Stamford Bridge in August 2011. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Stamford Bridge with a long lease were valued about £270,000. The average amount of ground rent was £55 collected yearly. The lease ran out in 2101. Taking into account 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.