With a residential leasehold property in Stocksfield, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Leasehold owners in Stocksfield with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Halifax | 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. |
Lease extensions in Stocksfield can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Stocksfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn was the the leasehold owner of a 2 bedroom apartment in Stocksfield being sold with a lease of fraction over 61 years remaining. Finn on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were contacted by Dr Alfie Peterson who, having moved into a ground floor apartment in Stocksfield in September 2004. The question was if we could approximate the price could be to prolong the lease by 90 years. Identical flats in Stocksfield with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended on 20 November 2098. Taking into account 72 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Mr and Mrs. W Miller bought a ground floor flat in Stocksfield in April 2006. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Similar residencies in Stocksfield with 100 year plus lease were valued around £233,200. The mid-range ground rent payable was £60 billed annually. The lease lapsed in 2087. Given that there were 61 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.