Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Stanmore. Clearly, the period of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Stanmore have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful attention before putting off your Stanmore lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold premises in Stanmore with over one hundred years outstanding on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
Lender | Requirement |
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Bank of Scotland | 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. |
Halifax | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
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 |
Regardless of whether you are a tenant or a freeholder in Stanmore,the lease extension experts that we work with will always be willing 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.
Following unsuccessful correspondence with the landlord of her ground floor flat in Stanmore, Poppy initiated the lease extension process as the eighty year deadline was rapidly nearing. The legal work was concluded in November 2005. The freeholder’s costs were restricted to a tad over 450 pounds.
Mr and Mrs. F Hall was assigned a lease of a recently refurbished flat in Stanmore in November 2010. The question was if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Stanmore with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed per annum. The lease lapsed in 2082. Taking into account 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including expenses.
An example of a Lease Extension matter before the tribunal for a Stanmore residence 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 affected 1 flat. The remaining number of years on the lease was 70.25 years.