Chances are that where you own a flat in Stevenage you actually own a long leasehold interest over your property
Leasehold premises in Stevenage with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Stevenage,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stevenage valuers.
Henry owned a high value flat in Stevenage on the market with a lease of a little over fifty eight years remaining. Henry informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Mr B García purchased a garden flat in Stevenage in October 1997. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Stevenage with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired on 7 May 2080. Given that there were 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.
Last month we were phoned by Mr Cameron Rose , who was assigned a lease of a one bedroom flat in Stevenage in August 2012. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar properties in Stevenage with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated in 2100. Given that there were 75 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.