With a domestic leasehold property in Stocksfield, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years remaining. Leasehold owners in Stocksfield with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has less than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Stocksfield with over one hundred years remaining 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 property. In such situations there is often little to be gained by purchasing the freehold 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Stocksfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Aarav owned a high value apartment in Stocksfield being marketed with a lease of a little over sixty years left. Aarav informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
In 2013 we were phoned by Dr Nathan Bertrand who, having was assigned a lease of a first floor apartment in Stocksfield in May 2006. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Stocksfield with a long lease were worth £235,600. The average amount of ground rent was £60 invoiced quarterly. The lease end date was on 16 July 2087. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.
Last Summer we were e-mailed by Mr John Green , who took over the lease of a one bedroom apartment in Stocksfield in August 2000. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparable flats in Stocksfield with a long lease were valued around £174,200. The average amount of ground rent was £55 billed quarterly. The lease ran out in 2076. Considering the 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.