When it comes to domestic leasehold premises in Stotfold, you are actually purchasing an entitlement to reside 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. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Anyone in Stotfold with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years remaining, under the relevant Act the freeholder can calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Stotfold,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stotfold valuers.
After unsuccessful correspondence with the freeholder of her purpose-built apartment in Stotfold, Alicia started the lease extension process just as the lease was approaching the crucial 80-year threshold. The transaction completed in November 2008. The freeholder’s fees were kept to an absolute minimum.
Dr F Williams completed a recently refurbished flat in Stotfold in November 2004. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Stotfold with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 billed per annum. The lease ran out on 27 February 2100. Given that there were 74 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
Dr Eli Jones moved into a studio flat in Stotfold in November 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Stotfold with a long lease were valued about £248,000. The mid-range amount of ground rent was £65 collected yearly. The lease expired in 2089. Considering the 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus costs.