With a residential leasehold premises in Stoke Newington, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Stoke Newington with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under 80 years remaining, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Stoke Newington leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Kai, started to get near to the eighty-year mark with the lease on his first floor flat in Stoke Newington. Having bought his home two decades ago, the unexpired term was of minimal significance. Thankfully, he realised he needed to take action soon on Extending the lease. Kai arranged for a lease extension at the eleventh hour last March. Kai and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If he had missed the deadline, the figure would have escalated by at least £925.
In 2009 we were contacted by Ms E Johnson who, having moved into a one bedroom flat in Stoke Newington in July 2011. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Identical residencies in Stoke Newington with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2105. Considering the 79 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.
An example of a Lease Extension decision for a Stoke Newington flat is Lower Flat 16A Beatty Road in September 2012. The premium payable was £13,577. The terms of the lease has been agreed between the Applicants and the First Respondent and the Tribunal did not seek to disturb that agreement. This case was in relation to 1 flat.