For anyone whose Stanley property is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Stanley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanley valuers.
Trailing lengthy negotiations with the landlord of her one bedroom flat in Stanley, Naomi initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work was concluded in May 2011. The landlord’s costs were restricted to about 700 pounds.
Mr and Mrs. N Howard moved into a basement flat in Stanley in October 2008. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical flats in Stanley with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced annually. The lease ran out on 14 January 2076. Considering the 50 years unexpired we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including expenses.
Ms Ashleigh González owned a ground floor apartment in Stanley in June 2007. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar properties in Stanley with an extended lease were in the region of £208,200. The average amount of ground rent was £65 collected quarterly. The lease ran out on 15 November 2087. Having 61 years outstanding we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.