Stamford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Stamford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Stamford you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Stamford with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Leeds Building Society | |
| Santander | |
| Virgin |
Lease extensions in Stamford can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Stamford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold proprietor of a high value flat in Stamford being sold with a lease of a few days over 59 years outstanding. Jake informally contacted his freeholder being a well known London-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 initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. N Torres purchased a studio apartment in Stamford in January 2009. We are asked if we could estimate the price could be for a ninety year lease extension. Identical flats in Stamford with 100 year plus lease were valued about £191,400. The average amount of ground rent was £55 invoiced annually. The lease expired on 27 February 2080. Considering the 54 years as a residual term we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.
In 2011 we were e-mailed by Dr Kai Harris who, having took over the lease of a one bedroom apartment in Stamford in June 1999. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative properties in Stamford with a long lease were worth £295,000. The average amount of ground rent was £45 collected monthly. The lease terminated in 2100. Having 74 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.