Standish leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Standish residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Standish you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Engaging our service gives you increased control over the value of your Standish leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oscar owned a conversion flat in Standish being sold with a lease of a little over 61 years unexpired. Oscar informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Dr S Vincent took over the lease of a ground floor flat in Standish in July 2008. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable residencies in Standish with an extended lease were worth £285,000. The average ground rent payable was £55 billed per annum. The lease end date was on 10 February 2105. Taking into account 79 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2012 we were called by Ms Jodie Lambert who, having purchased a ground floor flat in Standish in May 2011. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparative flats in Standish with a long lease were worth £193,400. The average amount of ground rent was £65 collected per annum. The lease terminated on 18 February 2085. Considering the 59 years outstanding we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.