Stamfordham leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Flat owners in Stamfordham will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Stamfordham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Henry, started to get close to the 80-year threshold with the lease on his leasehold flat in Stamfordham. Having purchased his home two decades ago, the length of the lease was of little relevance. by good luck, it dawned on him that he would soon be paying way over the odds for a lease extension. Henry arranged for a lease extension just under the wire last April. Henry and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had gone below 80 years, the premium would have become more costly by a minimum £950.
Ms Georgia Harris owned a studio apartment in Stamfordham in March 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Stamfordham with a long lease were valued about £181,600. The average amount of ground rent was £55 invoiced annually. The lease expired in 2077. Considering the 52 years unexpired we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus expenses.
In 2010 we were called by Mr A Turner who, having acquired a purpose-built flat in Stamfordham in November 2009. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical properties in Stamfordham with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 collected monthly. The lease expired in 2097. Considering the 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.