Stokesley residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitor we work with provide it.
Eliot owned a studio apartment in Stokesley on the market with a lease of a few days over fifty eight years unexpired. Eliot informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last September we were phoned by Mr and Mrs. K Reed , who bought a one bedroom apartment in Stokesley in September 2006. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative premises in Stokesley with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £60 collected yearly. The lease concluded in 2105. Having 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.
In 2013 we were approached by Mr and Mrs. W Anderson who, having was assigned a lease of a one bedroom flat in Stokesley in June 1995. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Stokesley with an extended lease were worth £200,800. The average amount of ground rent was £65 billed quarterly. The lease terminated in 2085. Considering the 60 years remaining we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus fees.