It’s an underpublicised certainty that a Stockton Heath residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Stockton Heath property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Stockton Heath will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 experience and the close ties they enjoy with Stockton Heath valuers.
Off the back of lengthy correspondence with the landlord of her garden apartment in Stockton Heath, Megan commenced the lease extension process as the 80 year mark was swiftly advancing. The transaction was concluded in February 2006. The landlord’s fees were restricted to less than 700 GBP.
Last Spring we were e-mailed by Ms Alisha Edwards , who purchased a purpose-built flat in Stockton Heath in May 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Stockton Heath with an extended lease were in the region of £264,000. The average amount of ground rent was £60 collected quarterly. The lease ran out on 12 June 2078. Taking into account 53 years unexpired we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of fees.
In 2011 we were e-mailed by Ms Rachael Simon who, having owned a ground floor apartment in Stockton Heath in April 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Stockton Heath with a long lease were valued about £220,400. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish on 10 May 2089. Considering the 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of fees.