When it comes to domestic leasehold property in Stanstead Abbotts, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Stanstead Abbotts with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Stanstead Abbotts with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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 |
| 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 solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanstead Abbotts valuers.
Eli was the the leasehold proprietor of a 2 bedroom apartment in Stanstead Abbotts being marketed with a lease of a little over 61 years remaining. Eli informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Eli to invoke his statutory right. Eli procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last month we were phoned by Mr and Mrs. I Clarke , who bought a studio apartment in Stanstead Abbotts in June 2007. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical flats in Stanstead Abbotts with an extended lease were in the region of £232,800. The mid-range ground rent payable was £45 collected every twelve months. The lease termination date was on 11 January 2090. Given that there were 65 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. H Sharif took over the lease of a purpose-built apartment in Stanstead Abbotts in March 2003. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Stanstead Abbotts with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 billed annually. The lease terminated in 2101. Considering the 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.