Unfortunately that a Stanstead Abbotts residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Stanstead Abbotts property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term drops under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Stanstead Abbotts will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| 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. |
Lease extensions in Stanstead Abbotts can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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.
14 months ago Riley, came critically near to the eighty-year mark with the lease on his leasehold flat in Stanstead Abbotts. In buying his property twenty years ago, the lease term was of minimal relevance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Riley arranged for a lease extension just in the nick of time in April. Riley and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £950.
In 2012 we were approached by Dr Caleb Ricardo who, having moved into a studio apartment in Stanstead Abbotts in June 2009. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Stanstead Abbotts with an extended lease were valued about £260,000. The average amount of ground rent was £50 billed per annum. The lease ran out on 13 July 2098. Having 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Dr Megan Ricardo moved into a ground floor flat in Stanstead Abbotts in March 2007. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical properties in Stanstead Abbotts with a long lease were valued around £261,600. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish in 2078. Having 52 years unexpired we estimated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of expenses.