Stoke Poges leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Stoke Poges will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Stoke Poges with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Stoke Poges,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stoke Poges valuers.
Edward owned a studio flat in Stoke Poges on the market with a lease of just over 61 years outstanding. Edward informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward obtained expert advice and secured satisfactory resolution informally and sell the property.
Mr Stanley Cooper acquired a one bedroom flat in Stoke Poges in May 2006. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable premises in Stoke Poges with 100 year plus lease were worth £280,000. The average ground rent payable was £55 collected annually. The lease lapsed on 6 August 2104. Considering the 78 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
Last month we were contacted by Mr and Mrs. P Clark , who moved into a garden flat in Stoke Poges in October 1996. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable premises in Stoke Poges with 100 year plus lease were worth £191,000. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2084. Having 58 years remaining we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of expenses.