When it comes to residential leasehold property in Stanstead Abbotts, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Residents in Stanstead Abbotts with a lease drawing near to 81 years left should seriously consider extending it sooner than later. When a lease has under 80 years outstanding, under the relevant statute the landlord is entitled to calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Stanstead Abbotts with more than 100 years left 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Stanstead Abbotts 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 dealing with Stanstead Abbotts lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad was the the leasehold owner of a studio flat in Stanstead Abbotts being sold with a lease of a few days over 61 years remaining. Muhammad on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were contacted by Mr N Scott who, having completed a first floor flat in Stanstead Abbotts in January 1996. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical properties in Stanstead Abbotts with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2095. Having 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Ms Alexandra Kelly was assigned a lease of a purpose-built apartment in Stanstead Abbotts in July 1996. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Stanstead Abbotts with a long lease were worth £246,800. The average amount of ground rent was £60 billed every twelve months. The lease expired on 16 July 2075. Considering the 50 years unexpired we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus fees.