The market value of a leasehold property in Stockbridge Village depends on how long the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed well before the 80 year mark. Leasehold Reform legislation entitles Stockbridge Village qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Stockbridge Village with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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 lawyers that we work with undertake Stockbridge Village 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 lawyer we work with provide it.
Trailing protracted negotiations with the landlord of her ground floor apartment in Stockbridge Village, Georgina initiated the lease extension process as the 80 year deadline was rapidly advancing. The lease extension was concluded in January 2011. The freeholder’s fees were negotiated to below 650 GBP.
Last year we were called by Mrs Millie Ricardo , who owned a one bedroom flat in Stockbridge Village in May 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Stockbridge Village with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 billed yearly. The lease expiry date was on 12 July 2076. Considering the 50 years unexpired we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including legals.
Mr and Mrs. V François purchased a basement apartment in Stockbridge Village in April 2001. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparative flats in Stockbridge Village with a long lease were in the region of £208,200. The average amount of ground rent was £65 collected quarterly. The lease ended on 28 April 2087. Taking into account 61 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of costs.