Stanstead Abbotts leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Stanstead Abbotts will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Stanstead Abbotts with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start 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 Stanstead Abbotts,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanstead Abbotts valuers.
Last October Joseph, came critically near to the eighty-year mark with the lease on his leasehold apartment in Stanstead Abbotts. In buying his home two decades ago, the unexpired term was of minimal interest. As luck would have it, he recognised he would soon be paying an inflated amount for Extending the lease. Joseph was able to extend his lease at the eleventh hour in March. Joseph and the freeholder in the end settled on a premium of £5,500 . If he had missed the deadline, the figure would have escalated by at least £1,075.
Last month we were contacted by Mr M Lee , who purchased a studio apartment in Stanstead Abbotts in August 2003. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in Stanstead Abbotts with 100 year plus lease were in the region of £191,000. The average ground rent payable was £65 invoiced yearly. The lease expired on 9 November 2083. Having 58 years unexpired we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.
Dr Aiden Nguyen took over the lease of a basement apartment in Stanstead Abbotts in May 1998. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar flats in Stanstead Abbotts with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed on 2 February 2094. Having 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.