The nearer a residential lease in Stamford Hill nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Stamford Hill will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you qualify for a lease extension. In certain 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 more than 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB 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 75 years plus the term of the mortgage at the outset 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 |
Lease extensions in Stamford Hill can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Stamford Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Evan, started to get close to the 80-year threshold with the lease on his first floor flat in Stamford Hill. Having bought his property 19 years ago, the unexpired term was of no relevance. by good luck, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Evan arranged for a lease extension just in the nick of time in April. Evan and the freeholder via the managing agents eventually settled on sum of £5,500 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,150.
In 2010 we were approached by Mrs A Girard who, having completed a newly refurbished flat in Stamford Hill in May 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Stamford Hill with a long lease were worth £240,600. The average amount of ground rent was £60 billed annually. The lease termination date was on 21 August 2088. Having 62 years left we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus costs.
An example of a Lease Extension decision for a Stamford Hill flat 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 affected 1 flat. The number of years remaining on the existing lease(s) was 59 years.