Stony Stratford leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Stony Stratford will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with procure Stony Stratford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the landlord of her basement apartment in Stony Stratford, Amy started the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was concluded in September 2013. The landlord’s costs were restricted to less than five hundred pounds.
In 2014 we were approached by Mr Max Cox who, having purchased a one bedroom apartment in Stony Stratford in May 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar homes in Stony Stratford with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2076. Taking into account 50 years as a residual term we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including professional charges.
In 2013 we were called by Ms K Alexander who, having owned a basement apartment in Stony Stratford in October 1998. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Similar residencies in Stony Stratford with a long lease were worth £280,000. The average ground rent payable was £45 collected yearly. The lease ran out in 2096. Considering the 70 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.