Stanwick leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Stanwick will usually qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Stanwick with more than one hundred years left on the lease are often referred to as ‘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 warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Using our service gives you better control over the value of your Stanwick leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Adam, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Stanwick. Having purchased his flat two decades ago, the unexpired term was of little concern. by good luck, he became aware that he needed to take steps soon on Extending the lease. Adam was able to extend his lease at the eleventh hour in April. Adam and the freeholder eventually agreed on an amount of £5,000 . If the lease had slid lower than eighty years, the figure would have increased by at least £1,125.
Last Spring we were contacted by Dr F Gómez , who took over the lease of a purpose-built flat in Stanwick in November 2009. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Stanwick with a long lease were in the region of £184,000. The average amount of ground rent was £55 collected every twelve months. The lease concluded in 2078. Given that there were 53 years as a residual term we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Mr and Mrs. L Roberts bought a garden flat in Stanwick in September 2006. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Stanwick with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed quarterly. The lease concluded in 2098. Considering the 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.