Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Stokenchurch. Clearly, the term of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Stokenchurch have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before putting off your Stokenchurch lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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 freeholder in Stokenchurch,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stokenchurch valuers.
In recent months Harry, came perilously close to the 80-year threshold with the lease on his garden apartment in Stokenchurch. Having purchased his home 18 years previously, the unexpired term was of no significance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Harry was able to extend his lease just under the wire last March. Harry and the landlord subsequently settled on sum of £5,000 . If the lease had slid to less than eighty years, the sum would have escalated by a minimum £975.
Mr and Mrs. M Gunderson took over the lease of a one bedroom apartment in Stokenchurch in October 2010. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Stokenchurch with an extended lease were valued around £233,200. The average ground rent payable was £60 invoiced monthly. The lease finished in 2087. Taking into account 61 years unexpired we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of fees.
In 2009 we were called by Mr and Mrs. S Williams who, having acquired a one bedroom flat in Stokenchurch in January 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Stokenchurch with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease end date was in 2076. Considering the 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus fees.