The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Stockwood have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Stockwood lease extension. Postponing that expense now simply increases the premium you will eventually be required to pay for a lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Stockwood can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 Stockwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the landlord of her leasehold apartment in Stockwood, Mollie started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The lease extension completed in November 2005. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mrs M Khan , who owned a one bedroom flat in Stockwood in November 2007. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Stockwood with a long lease were in the region of £218,000. The average amount of ground rent was £45 billed quarterly. The lease elapsed in 2088. Having 63 years outstanding we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus professional charges.
Mr and Mrs. R Gunderson moved into a basement apartment in Stockwood in August 2003. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical flats in Stockwood with a long lease were in the region of £265,000. The average ground rent payable was £50 billed yearly. The lease ran out on 2 February 2099. Taking into account 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.