Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Stamford Bridge. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Stamford Bridge have the legal entitlement to extend the lease for a further ninety years in accordance with statute. You should give careful deliberation before putting off your Stamford Bridge lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you better control over the value of your Stamford Bridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Oliver, came dangerously near to the 80-year mark with the lease on his two bedroom apartment in Stamford Bridge. In buying his home twenty years previously, the length of the lease was of minimal interest. Luckily, he became aware that he needed to take steps soon on a lease extension. Oliver extended the lease at the eleventh hour in May. Oliver and the freeholder via the management company eventually agreed on sum of £5,500 . If he had missed the deadline, the sum would have escalated by at least £1,050.
Mr and Mrs. V Lee was assigned a lease of a basement apartment in Stamford Bridge in August 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Stamford Bridge with an extended lease were valued about £260,000. The average amount of ground rent was £50 collected yearly. The lease expiry date was on 23 March 2098. Considering the 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2011 we were approached by Mr and Mrs. B Morel who, having owned a ground floor apartment in Stamford Bridge in February 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Stamford Bridge with an extended lease were valued about £256,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease terminated in 2078. Having 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £41,800 and £48,400 exclusive of fees.