Chances are that where you own a flat in Stockbridge you actually own a long leasehold interest over your property
Leasehold residencies in Stockbridge with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Stockbridge,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stockbridge valuers.
During the course of the last few months Logan, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Stockbridge. In buying his home 19 years previously, the length of the lease was of no concern. by good luck, he became aware that he needed to take steps soon on a lease extension. Logan extended the lease at the eleventh hour in March. Logan and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had dipped to less than 80 years, the figure would have increased by at least £925.
Last July we were contacted by Mrs Ashleigh Bailey , who moved into a studio apartment in Stockbridge in November 2000. The question was if we could approximate the premium could be for a ninety year lease extension. Similar homes in Stockbridge with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 billed yearly. The lease concluded on 8 March 2098. Having 72 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2014 we were phoned by Mr and Mrs. M White who, having moved into a first floor flat in Stockbridge in May 2007. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative premises in Stockbridge with a long lease were in the region of £261,600. The average ground rent payable was £60 billed monthly. The lease ended on 27 June 2078. Considering the 52 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.