The closer a domestic lease in Stamford Hill nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Stamford Hill will qualify for this right; however a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Stamford Hill with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Stamford Hill,the lease extension experts that we work with will always be happy 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 Hill valuers.
Twenty four months ago Rory, started to get near to the eighty-year threshold with the lease on his studio flat in Stamford Hill. Having bought his property 18 years previously, the unexpired term was of no significance. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Rory was able to extend his lease at the eleventh hour in July. Rory and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he not met the deadline, the premium would have gone up by at least £1,150.
Mr and Mrs. F Rose was assigned a lease of a studio apartment in Stamford Hill in August 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Stamford Hill with an extended lease were worth £223,400. The average amount of ground rent was £60 collected every twelve months. The lease elapsed in 2085. Considering the 59 years outstanding we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of expenses.
An example of a Lease Extension decision for a Stamford Hill property is Flat 25, Stamford Hill Mansions Stamford Hill in April 2010. The Tribunal therefore determined that the premium to be paid by the lessee to the freeholder for the extension of the lease should be £28,984.00 This case was in relation to 1 flat. The remaining number of years on the lease was 59 years.