With a long leasehold property in Stanmore, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Stanmore with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below 80 years outstanding, under the current legislation the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Stanmore lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jude was the the leasehold proprietor of a studio apartment in Stanmore being marketed with a lease of a little over 59 years left. Jude on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last Summer we were approach by Mr and Mrs. I Rose , who took over the lease of a studio flat in Stanmore in September 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Stanmore with a long lease were worth £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 9 November 2101. Considering the 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired residue of the current lease was 70.25 years.