Unfortunately that a Stapleton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Stapleton property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold 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 cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Stapleton,the lease extension solicitors that we work with will always be happy 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.
Last Spring Harry, started to get near to the 80-year mark with the lease on his garden flat in Stapleton. In buying his flat twenty years ago, the lease term was of minimal bearing. Thankfully, he recognised he needed to take steps soon on a lease extension. Harry was able to extend his lease at the eleventh hour last March. Harry and the landlord subsequently agreed on sum of £5,500 . If the lease had fallen to less than eighty years, the sum would have escalated by at least £900.
Last month we were phoned by Mr and Mrs. M Lee , who owned a recently refurbished apartment in Stapleton in February 2006. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Similar properties in Stapleton with a long lease were worth £213,600. The average amount of ground rent was £60 billed per annum. The lease concluded on 9 October 2083. Having 57 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including expenses.
Mr S Cook bought a garden flat in Stapleton in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Stapleton with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 billed annually. The lease ran out in 2103. Considering the 77 years outstanding we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.