When it comes to long leasehold premises in Stoke Park, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Stoke Park with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has less than eighty years left, under the current statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Stoke Park with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Stoke Park 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 lawyer we work with provide it.
Last year Cameron, started to get close to the eighty-year threshold with the lease on his studio apartment in Stoke Park. Having purchased his home twenty years previously, the unexpired term was of little bearing. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Cameron arranged for a lease extension at the eleventh hour last June. Cameron and the landlord eventually agreed on a premium of £6,000 . If he had missed the deadline, the figure would have increased by at least £975.
In 2012 we were contacted by Mrs Danielle Bernard who, having owned a first floor apartment in Stoke Park in May 2008. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Stoke Park with a long lease were worth £220,400. The average amount of ground rent was £45 billed annually. The lease end date was on 9 September 2089. Considering the 64 years outstanding we approximated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.
Last Autumn we were approach by Dr O Richardson , who was assigned a lease of a garden apartment in Stoke Park in June 2009. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Identical flats in Stoke Park with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed yearly. The lease finished on 19 March 2100. Considering the 75 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.