For anyone whose Stow on the Wold property is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Stow on the Wold can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Stow on the Wold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months William, came precariously near to the 80-year mark with the lease on his purpose- built flat in Stow on the Wold. In buying his home twenty years previously, the lease term was of minimal concern. Thankfully, he realised he needed to take action soon on a lease extension. William extended the lease just ahead of time in May. William and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had fallen to less than eighty years, the amount would have gone up by a minimum £950.
Last Winter we were phoned by Dr Hugo Gómez , who purchased a ground floor flat in Stow on the Wold in October 1996. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable homes in Stow on the Wold with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2104. Considering the 79 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
In 2013 we were phoned by Dr Joseph Cook who, having purchased a ground floor apartment in Stow on the Wold in October 1998. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar residencies in Stow on the Wold with an extended lease were in the region of £193,400. The average ground rent payable was £65 collected quarterly. The lease ran out in 2084. Considering the 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus legals.