Stapleton 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. It is the case that most Stapleton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Stapleton you would be well advised to check if your lease has between seventy and 90 years left. There are good reasons why a Stapleton flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Stapleton,the lease extension experts 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.
Off the back of protracted negotiations with the landlord of her leasehold flat in Stapleton, Jodie started the lease extension process as the 80 year threshold was fast coming. The lease extension was finalised in August 2010. The landlord’s fees were restricted to less than 650 pounds.
In 2012 we were phoned by Dr Jodie Lefebvre who, having completed a first floor flat in Stapleton in November 2004. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable homes in Stapleton with an extended lease were in the region of £280,000. The average ground rent payable was £45 collected every twelve months. The lease expiry date was on 10 September 2094. Having 69 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.
Last month we were phoned by Mr U Moore , who acquired a one bedroom apartment in Stapleton in January 2007. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Similar properties in Stapleton with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2083. Having 58 years left we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.