The market value of a leasehold property in Stanford Le Hope depends on how long the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year threshold. Current legislation enables Stanford Le Hope qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Stanford Le Hope with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Stanford Le Hope leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ryan owned a high value apartment in Stanford Le Hope being marketed with a lease of fraction over 72 years unexpired. Ryan on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ryan to invoke his statutory right. Ryan procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2014 we were called by Ms Millie Wright who, having acquired a purpose-built flat in Stanford Le Hope in October 2010. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical residencies in Stanford Le Hope with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 billed quarterly. The lease expired in 2092. Considering the 66 years left we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of legals.
Dr I Johnson took over the lease of a newly refurbished flat in Stanford Le Hope in February 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative premises in Stanford Le Hope with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease lapsed in 2081. Having 55 years left we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus expenses.