Chances are that where you own a flat in Stamfordham you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | 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. |
Regardless of whether you are a tenant or a landlord in Stamfordham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stamfordham valuers.
Leon owned a conversion apartment in Stamfordham being marketed with a lease of a few days over 59 years left. Leon informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2013 we were e-mailed by Mr and Mrs. I Thomas who, having moved into a newly refurbished flat in Stamfordham in November 2010. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative homes in Stamfordham with a long lease were worth £240,600. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out on 26 February 2088. Considering the 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
Mrs I Hall owned a purpose-built flat in Stamfordham in August 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar premises in Stamfordham with a long lease were worth £174,200. The average ground rent payable was £55 invoiced monthly. The lease ended on 6 June 2077. Taking into account 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.