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Why you should commence your Stamford Bridge lease extension


Why you should commence your Stamford Bridge lease extension today:

A Stamford Bridge lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Stamford Bridge. Clearly, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Stamford Bridge have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give careful deliberation before putting off your Stamford Bridge lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease

Stamford Bridge property with a lease extension is almost the same value as a freehold

Leasehold properties in Stamford Bridge with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to loan monies on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are considered to be deficient for lending purposes.

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.
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.
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.

What makes us experts in Stamford Bridge lease extensions?

Regardless of whether you are a tenant or a landlord in Stamford Bridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stamford Bridge valuers.

Stamford Bridge Lease Extension Example Cases:

Hollie, Stamford Bridge, East Yorkshire,

Following protracted correspondence with the landlord of her purpose-built apartment in Stamford Bridge, Hollie initiated the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in January 2010. The freeholder’s fees were restricted to a tad over 450 GBP.

Stamford Bridge case:

Last October we were e-mailed by Mr and Mrs. S Young , who took over the lease of a one bedroom apartment in Stamford Bridge in January 2000. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative homes in Stamford Bridge with 100 year plus lease were valued around £203,200. The mid-range ground rent payable was £65 collected yearly. The lease finished on 17 August 2086. Given that there were 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.

Stamford Bridge case:

In 2011 we were e-mailed by Dr Archie Turner who, having bought a one bedroom apartment in Stamford Bridge in November 2012. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical properties in Stamford Bridge with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed every twelve months. The lease ended in 2097. Having 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.