The market value of a leasehold property in Stoke Bishop is impacted by how long the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that formalities can be addressed in advance of the eighty year mark. Leasehold Reform legislation enables Stoke Bishop qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Stoke Bishop with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Stoke Bishop lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Muhammad owned a conversion flat in Stoke Bishop on the market with a lease of a few days over 59 years unexpired. Muhammad informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Mr and Mrs. B Vincent acquired a garden flat in Stoke Bishop in August 2010. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative flats in Stoke Bishop with an extended lease were valued about £200,800. The average ground rent payable was £65 invoiced annually. The lease elapsed on 1 July 2086. Having 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus fees.
Mr and Mrs. W Evans owned a ground floor apartment in Stoke Bishop in October 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar residencies in Stoke Bishop with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease ended in 2097. Considering the 71 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.