When it comes to domestic leasehold premises in Stanley, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Stanley with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has below eighty years remaining, under the current legislation the landlord can calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Stanley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanley valuers.
Half a year ago Nathan, started to get close to the eighty-year mark with the lease on his first floor flat in Stanley. In buying his flat 18 years previously, the length of the lease was of little interest. by good luck, he realised he needed to take action soon on a lease extension. Nathan extended the lease just under the wire in June. Nathan and the freeholder via the managing agents in the end settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,000.
Last Winter we were approach by Mr and Mrs. W Roux , who took over the lease of a recently refurbished flat in Stanley in November 2010. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative premises in Stanley with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease terminated on 14 May 2081. Given that there were 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus legals.
Mr Joshua Mercier bought a one bedroom apartment in Stanley in January 2007. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative homes in Stanley with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed per annum. The lease end date was in 2092. Taking into account 67 years remaining we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of costs.