Unfortunately that a Stanford Le Hope residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Stanford Le Hope property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. Most flat owners in Stanford Le Hope will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Trailing lengthy negotiations with the freeholder of her studio flat in Stanford Le Hope, Alexandra commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction was concluded in July 2014. The freeholder’s costs were restricted to approximately 450 pounds.
In 2014 we were approached by Mr and Mrs. V Wright who, having completed a studio apartment in Stanford Le Hope in March 2003. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative premises in Stanford Le Hope with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 25 June 2078. Taking into account 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.
Ms Alicia Moore bought a one bedroom apartment in Stanford Le Hope in August 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar flats in Stanford Le Hope with an extended lease were worth £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease lapsed in 2098. Given that there were 72 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.