Stamford Bridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Stamford Bridge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Stamford Bridge you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Stamford Bridge with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 enhanced control over the value of your Stamford Bridge leasehold, as your property will be more valuable and saleable in respect of 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.
Twenty four months ago George, started to get close to the 80-year mark with the lease on his purpose- built flat in Stamford Bridge. Having purchased his home twenty years previously, the unexpired term was of no interest. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. George extended the lease just under the wire last March. George and the freeholder via the management company ultimately agreed on an amount of £6,000 . If he had missed the deadline, the sum would have escalated by at least £900.
In 2010 we were e-mailed by Mr and Mrs. O Parker who, having completed a garden flat in Stamford Bridge in April 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Stamford Bridge with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed per annum. The lease lapsed in 2082. Considering the 57 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.
Last Autumn we were called by Mr and Mrs. F Bertrand , who took over the lease of a first floor flat in Stamford Bridge in June 2007. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative flats in Stamford Bridge with a long lease were in the region of £245,000. The average ground rent payable was £45 collected monthly. The lease expired on 25 November 2093. Having 68 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.