Stony Stratford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Stony Stratford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Stony Stratford you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Stony Stratford leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Stony Stratford leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a conversion flat in Stony Stratford being sold with a lease of just over fifty eight years left. Thomas on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last May we were called by Mr and Mrs. K Williams , who purchased a first floor apartment in Stony Stratford in February 2001. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar homes in Stony Stratford with a long lease were worth £295,000. The average ground rent payable was £45 billed per annum. The lease came to a finish in 2100. Given that there were 74 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Ms K Rivera bought a basement apartment in Stony Stratford in September 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Stony Stratford with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 billed yearly. The lease concluded on 28 August 2089. Having 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including legals.