Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Stoke Sub Hamdon. Clearly, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Stoke Sub Hamdon have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Stoke Sub Hamdon lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 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 ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Stoke Sub Hamdon,the lease extension solicitors that we work with will always be willing 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 Sub Hamdon valuers.
Stanley owned a conversion apartment in Stoke Sub Hamdon being marketed with a lease of a little over 61 years unexpired. Stanley on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Stanley to exercise his statutory right. Stanley procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Summer we were approach by Mrs Eleanor Edwards , who was assigned a lease of a ground floor apartment in Stoke Sub Hamdon in October 2001. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Stoke Sub Hamdon with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease expired in 2084. Given that there were 59 years as a residual term we calculated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.
In 2009 we were contacted by Mrs Emma Stewart who, having took over the lease of a garden apartment in Stoke Sub Hamdon in November 2011. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Stoke Sub Hamdon with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease concluded in 2104. Taking into account 79 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.