As the length of the unexpired term of a Stapleford domestic lease decreases so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Stapleford will meet the qualifying criteria; however a lawyer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Stapleford with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Stapleford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Stanley, started to get near to the 80-year threshold with the lease on his ground floor flat in Stapleford. Having bought his flat 19 years ago, the length of the lease was of minimal concern. Luckily, he became aware that he needed to take action soon on Extending the lease. Stanley extended the lease just ahead of time in August. Stanley and the freeholder via the management company eventually settled on a premium of £5,000 . If he had missed the deadline, the amount would have gone up by at least £1,025.
Last Spring we were contacted by Mrs A Thomas , who moved into a basement apartment in Stapleford in August 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical homes in Stapleford with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 15 January 2079. Considering the 54 years remaining we calculated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of professional charges.
In 2011 we were e-mailed by Dr Molly Watson who, having purchased a garden apartment in Stapleford in October 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Stapleford with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 invoiced monthly. The lease termination date was on 11 May 2099. Taking into account 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.