Stokesley leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Stokesley will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Stokesley with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Stokesley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the landlord of her garden apartment in Stokesley, Katherine started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was finalised in November 2011. The landlord’s fees were kept to an absolute minimum.
Dr J Allen moved into a ground floor flat in Stokesley in January 2002. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Stokesley with an extended lease were valued around £280,000. The mid-range ground rent payable was £55 collected per annum. The lease expired on 23 October 2104. Having 78 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
Last Spring we were phoned by Mr and Mrs. I Torres , who took over the lease of a one bedroom apartment in Stokesley in September 2000. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable residencies in Stokesley with 100 year plus lease were valued around £191,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease came to a finish in 2084. Considering the 58 years remaining we calculated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of fees.