It’s a harsh certainty that a Stamfordham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Stamfordham property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Stamfordham will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Stamfordham with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Stamfordham can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 Stamfordham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav was the the leasehold owner of a 2 bedroom apartment in Stamfordham on the market with a lease of fraction over fifty eight years outstanding. Aarav informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2014 we were contacted by Mr Jacob Williams who, having owned a garden apartment in Stamfordham in March 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Stamfordham with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded in 2084. Taking into account 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including fees.
Last March we were called by Dr S Garcia , who completed a ground floor apartment in Stamfordham in October 1995. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable residencies in Stamfordham with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed per annum. The lease expiry date was on 10 May 2104. Considering the 79 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.