Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Stokesley. Clearly, the length of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Stokesley have the right to extend the lease for a further 90 years under statute. Do give careful attention before putting off your Stokesley lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Stokesley leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the landlord of her first floor flat in Stokesley, Kirsty started the lease extension process as the eighty year mark was rapidly approaching. The transaction completed in February 2014. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were called by Mr R Mitchell who, having moved into a studio apartment in Stokesley in June 1996. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical flats in Stokesley with an extended lease were in the region of £225,400. The average amount of ground rent was £45 collected monthly. The lease ran out on 8 June 2089. Given that there were 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus professional charges.
Last Winter we were approach by Mr and Mrs. D Ali , who acquired a recently refurbished flat in Stokesley in May 2010. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Stokesley with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed on 18 February 2100. Considering the 75 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.