The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Stokesley can extend the lease for an additional ninety years in accordance with legislation. Do give careful consideration before delaying your Stokesley lease extension. Shelving the costs today simply increases the price you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Stokesley 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.
Jake owned a 2 bedroom flat in Stokesley on the market with a lease of a few days over sixty years remaining. Jake informally approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Mr and Mrs. L Parker bought a one bedroom apartment in Stokesley in April 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparable residencies in Stokesley with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced yearly. The lease expired on 19 March 2099. Taking into account 73 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
In 2014 we were contacted by Ms C Thompson who, having bought a first floor flat in Stokesley in March 2006. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative homes in Stokesley with a long lease were valued around £264,000. The average ground rent payable was £60 billed monthly. The lease finished in 2079. Considering the 53 years remaining we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus costs.