The only way is down when it comes to Stone lease terms. Stone leaseholds that have a remaining term fewer than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Stone with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Stone,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stone valuers.
Jamie was the the leasehold owner of a studio apartment in Stone on the market with a lease of fraction over sixty years outstanding. Jamie on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Jamie to exercise his statutory right. Jamie procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Ms Y Smith was assigned a lease of a ground floor flat in Stone in August 2005. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Stone with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish in 2098. Given that there were 72 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2011 we were e-mailed by Ms L Adams who, having bought a recently refurbished apartment in Stone in November 2000. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Stone with a long lease were valued around £261,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated in 2078. Given that there were 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including fees.