Stockton Heath leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Stockton Heath tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Stockton Heath you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Stockton Heath flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
Leasehold properties in Stockton Heath with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Stockton Heath,the lease extension experts 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 Stockton Heath valuers.
In the wake of 9 months of unsuccessful correspondence with the landlord of her leasehold flat in Stockton Heath, Morgan initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The legal work was finalised in February 2014. The landlord’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Mrs Leah Taylor who, having purchased a one bedroom apartment in Stockton Heath in March 1998. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Similar properties in Stockton Heath with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced annually. The lease ended on 8 August 2076. Given that there were 50 years unexpired we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.
Last Summer we were contacted by Mr and Mrs. B Young , who acquired a garden apartment in Stockton Heath in August 2009. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable premises in Stockton Heath with an extended lease were worth £208,200. The average amount of ground rent was £65 billed per annum. The lease expiry date was on 3 April 2087. Given that there were 61 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.