It’s an underpublicised certainty that a Stechford residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Stechford property market.Once your lease nears 85ish years, you need to 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 lower than eighty years - otherwise a higher amount will be due. Most flat owners in Stechford will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date 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. |
Engaging our service will provide you increased control over the value of your Stechford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted discussions with the freeholder of her garden apartment in Stechford, Leah initiated the lease extension process as the eighty year mark was rapidly coming. The legal work was finalised in October 2005. The landlord’s charges were kept to an absolute minimum.
In 2011 we were phoned by Dr P Mitchell who, having was assigned a lease of a ground floor flat in Stechford in February 2010. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable residencies in Stechford with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2097. Taking into account 72 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2012 we were e-mailed by Mrs Yasmin Michel who, having bought a ground floor flat in Stechford in April 2000. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar flats in Stechford with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced per annum. The lease finished on 9 January 2086. Taking into account 61 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus fees.