With a residential leasehold premises in Stoke Park, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about 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 gets disproportionately more expensive especially once there are less than eighty years remaining. Residents in Stoke Park with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current legislation the freeholder can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Stoke Park can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 procuring Stoke Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Caleb, started to get close to the eighty-year mark with the lease on his garden apartment in Stoke Park. In buying his property two decades ago, the unexpired term was of little significance. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Caleb arranged for a lease extension at the eleventh hour last May. Caleb and the freeholder via the managing agents ultimately settled on an amount of £5,500 . If the lease had dropped lower than 80 years, the figure would have become more costly by at least £875.
Mr and Mrs. D Williams bought a purpose-built flat in Stoke Park in May 2000. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar residencies in Stoke Park with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2085. Given that there were 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus professional charges.
In 2014 we were called by Ms K André who, having purchased a one bedroom flat in Stoke Park in May 1997. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical residencies in Stoke Park with an extended lease were valued about £250,000. The average ground rent payable was £50 collected per annum. The lease concluded in 2096. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.