It’s a harsh truth that a Stanley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Stanley property market.Where your lease has approximately 90 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' on top of 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 Stanley will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Virgin |
Using our service will provide you enhanced control over the value of your Stanley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Samuel owned a conversion apartment in Stanley being sold with a lease of a little over 72 years unexpired. Samuel on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
In 2013 we were approached by Mrs Natalie Girard who, having took over the lease of a first floor flat in Stanley in June 2001. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative properties in Stanley with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 invoiced yearly. The lease elapsed in 2087. Having 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including fees.
Mr and Mrs. U Baker acquired a purpose-built flat in Stanley in November 1998. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Stanley with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced annually. The lease terminated in 2098. Considering the 72 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.