With a long leasehold property in Stamford Bridge, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Stamford Bridge with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the current Act the freeholder can calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Stamford Bridge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stamford Bridge valuers.
Henry was the the leasehold owner of a studio flat in Stamford Bridge on the market with a lease of fraction over fifty eight years remaining. Henry informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2014 we were e-mailed by Mrs K Davis who, having was assigned a lease of a one bedroom flat in Stamford Bridge in June 1998. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Identical premises in Stamford Bridge with an extended lease were valued around £186,000. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2083. Having 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.
Mr J Harris moved into a one bedroom flat in Stamford Bridge in May 1995. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in Stamford Bridge with a long lease were valued about £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease end date was in 2094. Given that there were 69 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.