It’s an underpublicised certainty that a Stourport On Severn residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Stourport On Severn property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. The majority of flat owners in Stourport On Severn will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Stourport On Severn with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Stourport On Severn,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 in-depth market knowledge and the close ties they enjoy with Stourport On Severn valuers.
Half a year ago Leon, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Stourport On Severn. In buying his flat two decades ago, the length of the lease was of minimal concern. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. Leon was able to extend his lease at the eleventh hour in September. Leon and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he not met the deadline, the amount would have gone up by at least £875.
Mr and Mrs. S Bell owned a purpose-built apartment in Stourport On Severn in June 1998. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Stourport On Severn with an extended lease were worth £176,200. The average amount of ground rent was £65 collected annually. The lease terminated in 2082. Considering the 56 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including legals.
Dr I Michel acquired a newly refurbished flat in Stourport On Severn in January 2009. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar residencies in Stourport On Severn with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 billed annually. The lease came to a finish in 2092. Given that there were 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.