Stone Cross residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | 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. |
Engaging our service will provide you increased control over the value of your Stone Cross leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finn owned a 2 bedroom apartment in Stone Cross on the market with a lease of just over sixty years outstanding. Finn informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2011 we were approached by Mr and Mrs. R García who, having moved into a ground floor flat in Stone Cross in February 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Stone Cross with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 21 June 2098. Having 72 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2014 we were called by Mr and Mrs. F Murphy who, having was assigned a lease of a first floor flat in Stone Cross in January 2003. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical properties in Stone Cross with a long lease were in the region of £235,600. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed on 3 June 2088. Considering the 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of costs.