It’s a harsh truth that a Stapleton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Stapleton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Most flat owners in Stapleton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Stapleton with more than 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Santander | |
| TSB | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a landlord in Stapleton,the lease extension lawyers 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 Stapleton valuers.
Gabriel owned a 2 bedroom apartment in Stapleton on the market with a lease of fraction over fifty eight years outstanding. Gabriel on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2009 we were approached by Mr and Mrs. M Torres who, having bought a one bedroom flat in Stapleton in August 2006. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Stapleton with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 billed yearly. The lease terminated in 2098. Taking into account 72 years remaining we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus professional charges.
Last year we were contacted by Dr Archie Brooks , who was assigned a lease of a ground floor apartment in Stapleton in January 2008. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable flats in Stapleton with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 billed yearly. The lease lapsed on 2 August 2087. Considering the 61 years left we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.