Top reasons for Stanley lease extension

Why you should start your Stanley lease extension today:

A Stanley lease depreciates with the years remaining on the lease.

Stanley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Stanley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Stanley you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

Stanley property with a lease extension is almost the same value as a freehold

Leasehold premises in Stanley with more than 100 years remaining 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to issue a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Stanley?

The conveyancers that we work with procure Stanley 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 lawyer we work with provide it.

Stanley Lease Extension Example Cases:

Niamh, Stanley, County Durham,

After lengthy negotiations with the freeholder of her first floor flat in Stanley, Niamh initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The lease extension was finalised in April 2010. The freeholder’s charges were restricted to less than 450 GBP.

Stanley case:

Mr G Mitchell was assigned a lease of a newly refurbished apartment in Stanley in July 1999. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar properties in Stanley with an extended lease were valued around £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed on 23 March 2103. Having 77 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.

Stanley case:

Mr and Mrs. Y Martin completed a recently refurbished flat in Stanley in January 2001. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Stanley with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2083. Taking into account 57 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.