Stow on the Wold leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Stow on the Wold residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Stow on the Wold you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Stow on the Wold with more than one hundred years outstanding on the lease are sometimes referred to as ‘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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| 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. |
| 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 |
The conveyancing solicitors that we work with handle Stow on the Wold lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of eight months of lengthy correspondence with the landlord of her one bedroom apartment in Stow on the Wold, Yasmin commenced the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work completed in April 2009. The freeholder’s fees were negotiated to about 500 pounds.
Last Autumn we were phoned by Mr T Torres , who owned a one bedroom apartment in Stow on the Wold in July 2008. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Similar homes in Stow on the Wold with 100 year plus lease were worth £218,000. The average ground rent payable was £45 collected every twelve months. The lease finished in 2087. Considering the 63 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.
Mr and Mrs. I González was assigned a lease of a basement apartment in Stow on the Wold in August 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Stow on the Wold with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced yearly. The lease end date was on 26 August 2098. Given that there were 74 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.