As the length of the unexpired term of a Stow on the Wold domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Stow on the Wold will meet the qualifying criteria; that being said a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Stow on the Wold with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Stow on the Wold leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Liam owned a conversion flat in Stow on the Wold being sold with a lease of just over 72 years unexpired. Liam informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Mrs I Edwards acquired a first floor flat in Stow on the Wold in April 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Stow on the Wold with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed annually. The lease finished on 15 July 2080. Taking into account 55 years outstanding we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
In 2012 we were contacted by Mr and Mrs. A Cooper who, having owned a first floor flat in Stow on the Wold in November 2002. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical flats in Stow on the Wold with an extended lease were worth £235,200. The average ground rent payable was £45 collected quarterly. The lease came to a finish on 14 October 2091. Having 66 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.