Stockbridge residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Stockbridge with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | 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 also be not less than 75 years at the outset 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. |
Irrespective of whether you are a tenant or a freeholder in Stockbridge,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stockbridge valuers.
Nathaniel owned a high value apartment in Stockbridge on the market with a lease of fraction over 72 years outstanding. Nathaniel on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Dr Victoria Richardson completed a purpose-built apartment in Stockbridge in July 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Stockbridge with an extended lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out in 2090. Having 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
In 2013 we were contacted by Ms R Morgan who, having completed a one bedroom flat in Stockbridge in September 2003. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Stockbridge with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish on 3 June 2101. Having 76 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.