For those whose Stamford Bridge property is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Stamford Bridge with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Stamford Bridge,the lease extension experts that we work with will always be prepared 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.
Harvey owned a studio apartment in Stamford Bridge on the market with a lease of just over 59 years left. Harvey on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. Y Reed who, having took over the lease of a basement flat in Stamford Bridge in October 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Stamford Bridge with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2102. Having 77 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Ms A Sánchez moved into a ground floor apartment in Stamford Bridge in October 1997. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Stamford Bridge with an extended lease were in the region of £183,600. The average ground rent payable was £65 invoiced annually. The lease ended in 2082. Taking into account 57 years remaining we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.