The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Stansted have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Stansted lease extension. Postponing the costs today simply escalates the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers that we work with procure Stansted 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 lawyer we work with provide it.
William was the the leasehold owner of a 2 bedroom apartment in Stansted being sold with a lease of fraction over 72 years left. William informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were William to exercise his statutory right. William procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr Oliver Norbert moved into a first floor flat in Stansted in February 2005. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Stansted with 100 year plus lease were valued around £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished in 2087. Taking into account 61 years remaining we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
Last year we were called by Dr B Evans , who owned a first floor flat in Stansted in March 1997. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparative flats in Stansted with a long lease were worth £260,000. The average amount of ground rent was £50 billed quarterly. The lease ran out on 23 June 2098. Considering the 72 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.