Stamford Bridge residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset 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 |
| Yorkshire 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. |
The conveyancers 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 conveyancer we work with provide it.
Jack was the the leasehold proprietor of a 2 bedroom flat in Stamford Bridge on the market with a lease of a little over sixty years outstanding. Jack on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Summer we were contacted by Dr J Davies , who moved into a studio flat in Stamford Bridge in February 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative flats in Stamford Bridge with 100 year plus lease were valued around £245,000. The average amount of ground rent was £45 collected yearly. The lease concluded on 17 September 2094. Given that there were 68 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2014 we were contacted by Ms Y Brown who, having was assigned a lease of a basement apartment in Stamford Bridge in July 1998. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Stamford Bridge with an extended lease were worth £280,000. The mid-range ground rent payable was £55 collected per annum. The lease terminated on 18 May 2105. Having 79 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.