With a long leasehold premises in Stonehouse, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years left. Leasehold owners in Stonehouse with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you increased control over the value of your Stonehouse leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Aiden, came perilously close to the eighty-year mark with the lease on his purpose- built flat in Stonehouse. In buying his flat two decades ago, the unexpired term was of little importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Aiden was able to extend his lease just under the wire last May. Aiden and the landlord who owned the flat above eventually settled on sum of £5,500 . If he not met the deadline, the sum would have gone up by a minimum £1,100.
Last Winter we were approach by Mr and Mrs. B González , who purchased a purpose-built flat in Stonehouse in May 1998. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative premises in Stonehouse with a long lease were in the region of £193,400. The average ground rent payable was £65 invoiced monthly. The lease lapsed on 2 September 2084. Taking into account 59 years left we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Last Spring we were called by Mr Dylan Collins , who completed a garden flat in Stonehouse in August 2004. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar properties in Stonehouse with a long lease were in the region of £250,000. The average ground rent payable was £50 invoiced annually. The lease ended in 2095. Given that there were 70 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.