The value of Stocksfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is below than eighty years
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a freeholder in Stocksfield,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stocksfield valuers.
After unsuccessful negotiations with the freeholder of her ground floor apartment in Stocksfield, Louise commenced the lease extension process as the eighty year threshold was fast coming. The legal work completed in October 2012. The landlord’s charges were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. R Norbert , who took over the lease of a one bedroom flat in Stocksfield in September 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Stocksfield with an extended lease were in the region of £198,800. The average ground rent payable was £55 invoiced quarterly. The lease ended on 3 June 2080. Given that there were 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.
Dr Noah Williams completed a newly refurbished apartment in Stocksfield in October 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Stocksfield with a long lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease ended on 2 June 2100. Having 75 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.