There is no doubt about it a leasehold flat or house in Stamfordham is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Stamfordham will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 Stamfordham can be a difficult process. We recommend you obtain professional help 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 Stamfordham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Logan, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Stamfordham. Having bought his home twenty years previously, the length of the lease was of no bearing. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Logan was able to extend his lease just under the wire in January. Logan and the freeholder ultimately settled on sum of £5,500 . If the lease had descended lower than 80 years, the figure would have increased by a minimum £925.
In 2010 we were called by Ms T Flores who, having was assigned a lease of a studio flat in Stamfordham in February 2010. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar homes in Stamfordham with 100 year plus lease were valued about £250,400. The average amount of ground rent was £65 invoiced quarterly. The lease ended on 23 August 2090. Given that there were 64 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of fees.
Dr E Lee acquired a recently refurbished flat in Stamfordham in February 2007. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Stamfordham with an extended lease were worth £189,000. The mid-range ground rent payable was £55 billed quarterly. The lease expired on 21 March 2079. Considering the 53 years unexpired we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including fees.