Stotfold residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Stotfold with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Stotfold,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stotfold valuers.
Last October Jude, came perilously close to the 80-year threshold with the lease on his purpose- built apartment in Stotfold. Having bought his flat 19 years previously, the unexpired term was of minimal concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Jude extended the lease at the eleventh hour in May. Jude and the freeholder via the managing agents eventually settled on sum of £6,000 . If the lease had slipped below 80 years, the figure would have gone up by at least £1,000.
In 2010 we were e-mailed by Mr and Mrs. C Hernández who, having moved into a studio apartment in Stotfold in January 2009. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Stotfold with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 collected per annum. The lease concluded on 11 January 2090. Considering the 65 years remaining we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including costs.
Ms G Norbert purchased a garden apartment in Stotfold in February 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Stotfold with an extended lease were worth £191,400. The average ground rent payable was £55 collected per annum. The lease came to a finish on 12 November 2079. Considering the 54 years left we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus professional charges.