Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Stockbridge Village. Clearly, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Stockbridge Village have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give due deliberation before delaying your Stockbridge Village lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Stockbridge Village can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Stockbridge Village lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Callum, came dangerously near to the 80-year threshold with the lease on his first floor flat in Stockbridge Village. Having purchased his flat two decades ago, the length of the lease was of no bearing. Luckily, he realised he needed to take action soon on a lease extension. Callum was able to extend his lease at the eleventh hour in March. Callum and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have become more costly by at least £1,100.
Mr Harrison Phillips took over the lease of a purpose-built flat in Stockbridge Village in November 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Stockbridge Village with a long lease were in the region of £215,600. The mid-range ground rent payable was £45 collected monthly. The lease expired on 23 February 2087. Given that there were 62 years left we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of legals.
Mr W Ricardo owned a basement apartment in Stockbridge Village in October 1999. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative homes in Stockbridge Village with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed on 12 November 2098. Taking into account 73 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.