Stevenage leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Stevenage will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Stevenage with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you better control over the value of your Stevenage leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Archie owned a high value flat in Stevenage being marketed with a lease of just over 72 years outstanding. Archie informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2010 we were e-mailed by Ms P Mason who, having purchased a studio flat in Stevenage in February 1999. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable homes in Stevenage with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 billed per annum. The lease ended on 8 November 2093. Considering the 67 years left we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 not including fees.
Last month we were approach by Mr and Mrs. G Ward , who completed a one bedroom apartment in Stevenage in May 2012. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar flats in Stevenage with 100 year plus lease were valued about £201,200. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed in 2082. Given that there were 56 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.