Stapleford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Stapleford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Stapleford you would be well advised to see if your lease has between seventy and ninety years left. There are good reasons why a Stapleford flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with over 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 remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| 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 freeholder in Stapleford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stapleford valuers.
Last year Alfie, started to get close to the eighty-year mark with the lease on his garden flat in Stapleford. In buying his flat two decades ago, the unexpired term was of minimal significance. by good luck, he recognised he would soon be paying an escalated premium for Extending the lease. Alfie arranged for a lease extension at the eleventh hour in January. Alfie and the freeholder eventually settled on sum of £6,000 . If the lease had descended lower than 80 years, the sum would have gone up by at least £1,125.
Last Winter we were phoned by Dr Isabelle Simon , who purchased a first floor flat in Stapleford in May 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Stapleford with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out in 2085. Taking into account 59 years unexpired we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus fees.
In 2012 we were called by Dr W Martinez who, having completed a one bedroom flat in Stapleford in November 2003. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical residencies in Stapleford with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 collected per annum. The lease ran out in 2105. Considering the 79 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.