When it comes to residential leasehold property in Stanford Le Hope, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Residents in Stanford Le Hope with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When a lease has under 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Stanford Le Hope with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Stanford Le Hope 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 conveyancer we work with provide it.
16 months ago Daniel, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Stanford Le Hope. In buying his home twenty years previously, the length of the lease was of minimal importance. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Daniel extended the lease just ahead of time last May. Daniel and the freeholder ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £1,100.
Last Summer we were called by Mr and Mrs. H André , who took over the lease of a garden flat in Stanford Le Hope in August 2004. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable flats in Stanford Le Hope with 100 year plus lease were valued about £191,400. The average amount of ground rent was £55 collected per annum. The lease lapsed in 2080. Given that there were 54 years unexpired we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of fees.
In 2013 we were approached by Mr Andrew Vincent who, having purchased a newly refurbished apartment in Stanford Le Hope in March 2011. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Stanford Le Hope with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 billed yearly. The lease finished in 2100. Having 74 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.