When it comes to residential leasehold property in Stamford Hill, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years remaining. Leasehold owners in Stamford Hill with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has below eighty years left, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Stamford Hill with in excess of 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Stamford Hill,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 Hill valuers.
Last Summer Charlie, started to get close to the eighty-year threshold with the lease on his basement flat in Stamford Hill. In buying his flat 19 years previously, the length of the lease was of no bearing. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Charlie extended the lease just under the wire last July. Charlie and the landlord eventually agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have escalated by at least £1,100.
Mrs F Lee bought a purpose-built flat in Stamford Hill in January 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Stamford Hill with an extended lease were in the region of £265,200. The mid-range ground rent payable was £65 billed yearly. The lease end date was in 2092. Considering the 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including legals.
An example of a Lease Extension decision for a Stamford Hill premises 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 unexpired term was 59 years.