The value of Stoke Gifford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| 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. |
Lease extensions in Stoke Gifford can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
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 dealing with Stoke Gifford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Luca, came very close to the eighty-year threshold with the lease on his studio apartment in Stoke Gifford. Having bought his property 18 years previously, the unexpired term was of little bearing. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Luca was able to extend his lease just ahead of time in January. Luca and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £1,150.
Last November we were phoned by Mrs H Ramírez , who bought a newly refurbished apartment in Stoke Gifford in January 1998. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Stoke Gifford with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected annually. The lease ended on 12 April 2076. Taking into account 50 years as a residual term we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus costs.
Dr Danielle Ramírez completed a one bedroom apartment in Stoke Gifford in July 2005. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar flats in Stoke Gifford with 100 year plus lease were valued about £208,200. The average ground rent payable was £65 collected every twelve months. The lease elapsed on 27 April 2087. Considering the 61 years outstanding we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus expenses.