The closer a domestic lease in Stockwood gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Stockwood will qualify for this right; that being said a lawyer will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Stockwood with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Stockwood leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Riley owned a high value flat in Stockwood being sold with a lease of fraction over 72 years left. Riley on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2012 we were phoned by Mr J Wilson who, having completed a newly refurbished flat in Stockwood in April 1996. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Stockwood with a long lease were worth £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired on 8 April 2103. Having 77 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last Autumn we were phoned by Mr and Mrs. V Cooper , who was assigned a lease of a studio apartment in Stockwood in January 2011. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical premises in Stockwood with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended in 2083. Taking into account 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.