Chances are that where you own a flat in Stoke Newington you actually own a long leasehold interest over your property
Leasehold residencies in Stoke Newington with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Stoke Newington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stoke Newington valuers.
Trailing protracted correspondence with the freeholder of her basement flat in Stoke Newington, Abigail started the lease extension process as the eighty year deadline was quickly nearing. The lease extension was finalised in January 2006. The landlord’s charges were kept to an absolute minimum.
Last Winter we were e-mailed by Mrs K Richardson , who took over the lease of a garden flat in Stoke Newington in February 2012. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable residencies in Stoke Newington with 100 year plus lease were worth £191,000. The average ground rent payable was £65 collected yearly. The lease terminated on 28 June 2083. Taking into account 58 years remaining we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Stoke Newington property 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 related to 1 flat.