It’s a harsh certainty that a Stanley residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Stanley property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Stanley will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Stanley with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Stanley can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Stanley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Ali, came perilously near to the 80-year threshold with the lease on his basement apartment in Stanley. In buying his home twenty years ago, the length of the lease was of minimal bearing. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Ali arranged for a lease extension at the eleventh hour in April. Ali and the freeholder subsequently agreed on an amount of £5,000 . If the lease had fallen lower than 80 years, the amount would have increased by a minimum £1,100.
Last month we were contacted by Dr Hannah Ricardo , who bought a purpose-built apartment in Stanley in March 2011. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Stanley with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2106. Having 80 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
Last Summer we were phoned by Ms L Thomas , who acquired a garden apartment in Stanley in January 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar residencies in Stanley with a long lease were worth £200,800. The average amount of ground rent was £65 collected per annum. The lease expiry date was in 2086. Given that there were 60 years remaining we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.