Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Stockbridge. Inevitably, the period of lease left shortens over time. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Stockbridge have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful attention before delaying your Stockbridge lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | 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. |
Using our service gives you better control over the value of your Stockbridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Arthur owned a high value flat in Stockbridge on the market with a lease of just over 59 years outstanding. Arthur informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2012 we were phoned by Mr V Lefebvre who, having moved into a studio flat in Stockbridge in May 2008. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Stockbridge with a long lease were worth £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease terminated on 23 March 2086. Given that there were 60 years left we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.
In 2014 we were phoned by Dr Felix Michel who, having completed a ground floor apartment in Stockbridge in February 2009. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar homes in Stockbridge with an extended lease were valued around £255,000. The average ground rent payable was £50 billed annually. The lease concluded in 2097. Considering the 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.