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 your lease gets more expensive. Most owners of residential leasehold property in Stanley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Stanley you would be well advised to check if your lease has between 70 and 90 years remaining. There are good reasons why a Stanley flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Stanley with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Stanley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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 was the the leasehold owner of a studio flat in Stanley being sold with a lease of a few days over 59 years left. Ryan on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2014 we were e-mailed by Mr J Nguyen who, having acquired a ground floor apartment in Stanley in August 2010. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative homes in Stanley with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired in 2096. Having 70 years left we calculated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 plus costs.
Dr B Moreau bought a studio apartment in Stanley in September 1997. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparable flats in Stanley with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced yearly. The lease expired in 2076. Considering the 50 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of costs.