Stockbridge leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Stockbridge will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Stockbridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stockbridge valuers.
Last October Hunter, started to get near to the eighty-year mark with the lease on his first floor flat in Stockbridge. Having purchased his home 19 years previously, the lease term was of no interest. Thankfully, he became aware that he would soon be paying an inflated amount for a lease extension. Hunter extended the lease just under the wire in July. Hunter and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had dropped lower than eighty years, the price would have escalated by a minimum £950.
Mr and Mrs. C Turner moved into a first floor flat in Stockbridge in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Stockbridge with an extended lease were worth £265,000. The mid-range ground rent payable was £55 invoiced annually. The lease expired in 2100. Considering the 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Last September we were approach by Mr and Mrs. C Simon , who moved into a studio apartment in Stockbridge in November 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical properties in Stockbridge with 100 year plus lease were valued around £166,400. The mid-range ground rent payable was £60 billed per annum. The lease concluded in 2080. Given that there were 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including costs.