Stockbridge Village leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Stockbridge Village will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Stockbridge Village with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Stockbridge Village can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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.
Subsequent to unsuccessful discussions with the freeholder of her ground floor flat in Stockbridge Village, Caitlin commenced the lease extension process just as her lease was nearing the all-important 80-year mark. The lease extension was concluded in February 2013. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were approached by Mrs Eleanor Campbell who, having owned a one bedroom apartment in Stockbridge Village in October 2004. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Similar properties in Stockbridge Village with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 27 February 2099. Given that there were 74 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Last year we were called by Dr Abbie King , who owned a first floor flat in Stockbridge Village in July 1997. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable properties in Stockbridge Village with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected every twelve months. The lease ended in 2079. Considering the 54 years outstanding we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including costs.