Stanstead Abbotts leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Stanstead Abbotts enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Stanstead Abbotts you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Stanstead Abbotts leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| 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. |
| 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. |
| 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 |
The conveyancers that we work with handle Stanstead Abbotts 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.
Subsequent to protracted correspondence with the landlord of her garden flat in Stanstead Abbotts, Chelsea initiated the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work completed in August 2015. The freeholder’s costs were kept to an absolute minimum.
Ms C Edwards acquired a purpose-built flat in Stanstead Abbotts in October 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar premises in Stanstead Abbotts with 100 year plus lease were worth £173,800. The mid-range amount of ground rent was £60 billed annually. The lease end date was on 22 February 2081. Given that there were 55 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.
Ms G Edwards acquired a recently refurbished apartment in Stanstead Abbotts in February 1997. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Stanstead Abbotts with an extended lease were worth £235,200. The mid-range ground rent payable was £45 collected annually. The lease concluded on 6 November 2092. Given that there were 66 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.