For anyone whose Stockbridge Village property is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold residencies in Stockbridge Village with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 handle 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 conveyancer we work with provide it.
Oliver was the the leasehold proprietor of a high value apartment in Stockbridge Village being sold with a lease of a little over 59 years unexpired. Oliver informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last year we were contacted by Mr and Mrs. L Moore , who bought a ground floor flat in Stockbridge Village in May 2003. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative homes in Stockbridge Village with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expiry date was on 13 January 2095. Taking into account 69 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mr H Robinson bought a garden flat in Stockbridge Village in October 2003. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparative residencies in Stockbridge Village with an extended lease were worth £290,000. The mid-range amount of ground rent was £60 collected yearly. The lease ran out on 18 November 2106. Considering the 80 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.