The market value of Stevenage leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold premises in Stevenage with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
The conveyancers that we work with undertake Stevenage lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her ground floor apartment in Stevenage, Ella initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was concluded in April 2011. The landlord’s charges were kept to an absolute minimum.
Last Winter we were e-mailed by Dr U Murphy , who completed a newly refurbished flat in Stevenage in November 2008. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Identical homes in Stevenage with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2077. Considering the 52 years left we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including fees.
Last month we were approach by Mr Blake White , who purchased a basement apartment in Stevenage in May 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar flats in Stevenage with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 3 January 2097. Given that there were 72 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.