The re-sale value of a leasehold property in Stanwick is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year threshold. Current legislation enables Stanwick qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 landlord in Stanwick,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 in-depth market knowledge and the close ties they enjoy with Stanwick valuers.
In 2014 Nathaniel, came precariously near to the 80-year threshold with the lease on his two bedroom flat in Stanwick. In buying his home two decades ago, the unexpired term was of little bearing. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Nathaniel extended the lease at the eleventh hour in April. Nathaniel and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have gone up by at least £1,075.
In 2009 we were phoned by Mr and Mrs. V Bertrand who, having bought a recently refurbished flat in Stanwick in September 2006. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Identical premises in Stanwick with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 billed annually. The lease elapsed in 2103. Having 77 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
Mr Ethan Gómez took over the lease of a studio flat in Stanwick in October 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in Stanwick with a long lease were worth £260,200. The mid-range ground rent payable was £65 invoiced annually. The lease elapsed on 10 May 2092. Having 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including legals.