As the length of the unexpired term of a Stockbridge Village residential lease diminished so does its value and therefore the value of your property. Where the lease has, over 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Stockbridge Village will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 conveyancing solicitor we work with provide it.
After protracted correspondence with the landlord of her garden flat in Stockbridge Village, Alice started the lease extension process as the eighty year mark was quickly approaching. The transaction was finalised in January 2013. The landlord’s charges were negotiated to slightly above 600 pounds.
Mr K Thomas purchased a studio flat in Stockbridge Village in September 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Stockbridge Village with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 billed every twelve months. The lease ended on 7 February 2078. Taking into account 52 years left we calculated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of costs.
Ms Nicole Girard owned a purpose-built flat in Stockbridge Village in September 2011. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical flats in Stockbridge Village with a long lease were in the region of £218,000. The average amount of ground rent was £45 billed annually. The lease concluded on 21 March 2089. Given that there were 63 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus costs.