Stamfordham leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than eighty years - otherwise a higher premium will be due. Flat owners in Stamfordham will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
In recent months Rory, came seriously close to the 80-year mark with the lease on his purpose- built flat in Stamfordham. In buying his property 18 years ago, the length of the lease was of no bearing. by good luck, he became aware that he needed to take action soon on a lease extension. Rory extended the lease just under the wire last July. Rory and the freeholder via the management company in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,025.
In 2012 we were approached by Mr and Mrs. K Vincent who, having acquired a one bedroom flat in Stamfordham in April 2012. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative residencies in Stamfordham with an extended lease were valued around £285,000. The average amount of ground rent was £45 billed monthly. The lease concluded in 2096. Considering the 71 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
Last Autumn we were approach by Ms Phoebe André , who bought a garden apartment in Stamfordham in August 2011. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Stamfordham with an extended lease were in the region of £230,800. The average amount of ground rent was £60 collected yearly. The lease came to a finish in 2085. Considering the 60 years left we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 plus costs.