It’s a harsh certainty that a Stanford Le Hope residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Stanford Le Hope property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining slips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Stanford Le Hope will be able to extend under the legislation; however a lawyer will 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 has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety 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 |
|---|---|
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Stanford Le Hope can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Stanford Le Hope lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her studio flat in Stanford Le Hope, Isabella initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was concluded in October 2007. The landlord’s fees were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. D Ali , who moved into a garden flat in Stanford Le Hope in October 2001. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Similar premises in Stanford Le Hope with an extended lease were valued about £166,800. The mid-range amount of ground rent was £50 collected annually. The lease lapsed on 17 June 2076. Considering the 50 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus legals.
In 2009 we were e-mailed by Ms Elizabeth King who, having took over the lease of a garden apartment in Stanford Le Hope in May 2005. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Stanford Le Hope with an extended lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded in 2096. Taking into account 70 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.