Stanstead Abbotts 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. Legislation has been in place for sometime now allowing qualifying Stanstead Abbotts residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Stanstead Abbotts you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Stanstead Abbotts flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Stanstead Abbotts with over one hundred years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Stanstead Abbotts,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stanstead Abbotts valuers.
Ibrahim was the the leasehold owner of a high value apartment in Stanstead Abbotts on the market with a lease of just over 61 years outstanding. Ibrahim on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. G Harris owned a basement apartment in Stanstead Abbotts in August 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical properties in Stanstead Abbotts with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 collected quarterly. The lease expired on 26 May 2102. Considering the 77 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Mr and Mrs. W Sánchez took over the lease of a garden apartment in Stanstead Abbotts in June 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical properties in Stanstead Abbotts with a long lease were valued around £183,600. The mid-range ground rent payable was £65 collected monthly. The lease expiry date was in 2082. Having 57 years outstanding we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of fees.