Stanmore leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Stanmore tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Stanmore you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Stanmore flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Stanmore with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 landlord in Stanmore,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stanmore valuers.
Harry owned a 2 bedroom flat in Stanmore on the market with a lease of just over 72 years left. Harry on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Harry to invoke his statutory right. Harry obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Dr D Alexander bought a studio apartment in Stanmore in July 1996. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Identical flats in Stanmore with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced yearly. The lease ran out on 2 May 2100. Having 74 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Stanmore premises is 27B Hillside in February 2010. the resulting premium, all other aspects of the valuation having been agreed between the parties was set at £8,250 This case was in relation to 1 flat. The remaining number of years on the lease was 70.25 years.