Stechford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Stechford tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Stechford you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Stechford leasehold, as your property will be more valuable and saleable in relation to the lease length should you want 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 recent months Luke, came critically close to the 80-year mark with the lease on his first floor flat in Stechford. Having bought his home 18 years previously, the unexpired term was of no significance. Thankfully, he recognised he needed to take action soon on Extending the lease. Luke extended the lease at the eleventh hour in May. Luke and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had slipped to less than eighty years, the premium would have escalated by at least £950.
Last year we were e-mailed by Mr G Patel , who took over the lease of a first floor apartment in Stechford in April 2002. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Stechford with 100 year plus lease were valued about £280,000. The average amount of ground rent was £45 collected monthly. The lease concluded in 2096. Given that there were 70 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
Mr and Mrs. T Ward was assigned a lease of a first floor flat in Stechford in April 2007. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical homes in Stechford with a long lease were valued about £218,400. The average ground rent payable was £60 collected monthly. The lease finished in 2085. Taking into account 59 years left we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of costs.