The nearer a domestic lease in Stevenage gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Stevenage will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Stevenage leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the landlord of her first floor apartment in Stevenage, Kayleigh initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in July 2009. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were called by Dr W Cox who, having was assigned a lease of a garden flat in Stevenage in September 2006. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Stevenage with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded in 2092. Taking into account 67 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including legals.
Ms Chantelle López purchased a newly refurbished flat in Stevenage in January 2009. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable homes in Stevenage with a long lease were in the region of £201,200. The average ground rent payable was £55 invoiced every twelve months. The lease termination date was on 6 January 2081. Having 56 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.