The market value of Stapleford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Stapleford,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 Stapleford valuers.
Seth was the the leasehold proprietor of a conversion flat in Stapleford being marketed with a lease of a little over 61 years left. Seth on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. F Vincent acquired a first floor apartment in Stapleford in October 1996. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar premises in Stapleford with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 collected monthly. The lease concluded on 19 February 2104. Having 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2009 we were called by Mr and Mrs. O Bertrand who, having took over the lease of a studio apartment in Stapleford in February 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Stapleford with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 billed per annum. The lease expired on 21 June 2093. Considering the 67 years left we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus fees.