When it comes to residential leasehold property in Stamford, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Stamford with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Lease extensions in Stamford can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 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.
In the wake of 6 months of lengthy negotiations with the freeholder of her first floor apartment in Stamford, Gemma started the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was finalised in July 2008. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. K Flores , who owned a purpose-built flat in Stamford in September 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Stamford with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed on 18 May 2100. Considering the 75 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. G André owned a recently refurbished flat in Stamford in June 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar premises in Stamford with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 collected every twelve months. The lease expired on 27 June 2089. Given that there were 64 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including fees.