The closer a residential lease in Stevenage nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Stevenage will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Stevenage with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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. |
Lease extensions in Stevenage can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Stevenage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Evan, came seriously close to the eighty-year threshold with the lease on his purpose- built apartment in Stevenage. Having purchased his flat 19 years previously, the length of the lease was of minimal significance. Fortunately, he realised he needed to take action soon on a lease extension. Evan extended the lease just under the wire last April. Evan and the freeholder via the managing agents subsequently settled on a premium of £6,000 . If he not met the deadline, the premium would have gone up by a minimum £850.
In 2014 we were phoned by Mr and Mrs. L Nguyen who, having completed a ground floor apartment in Stevenage in March 2000. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable properties in Stevenage with 100 year plus lease were valued around £275,000. The average amount of ground rent was £45 invoiced every twelve months. The lease finished on 2 March 2095. Taking into account 69 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
Ms Freya Girard completed a one bedroom flat in Stevenage in September 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical flats in Stevenage with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired in 2084. Considering the 58 years unexpired we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.