Stow on the Wold leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Stow on the Wold will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Stow on the Wold with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
Irrespective of whether you are a tenant or a freeholder in Stow on the Wold,the lease extension solicitors 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 Stow on the Wold valuers.
During the course of the last few months Gabriel, came perilously close to the 80-year threshold with the lease on his purpose- built flat in Stow on the Wold. Having bought his flat twenty years previously, the length of the lease was of minimal interest. Thankfully, he recognised he needed to take action soon on a lease extension. Gabriel arranged for a lease extension at the eleventh hour in April. Gabriel and the freeholder eventually settled on the final figure of £6,000 . If he had missed the deadline, the premium would have escalated by at least £1,150.
Mr and Mrs. W Ali completed a basement flat in Stow on the Wold in January 2007. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical residencies in Stow on the Wold with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish on 25 August 2103. Having 77 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
In 2013 we were contacted by Dr Shannon Martin who, having acquired a basement apartment in Stow on the Wold in March 2003. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in Stow on the Wold with a long lease were worth £183,600. The average ground rent payable was £65 invoiced per annum. The lease lapsed in 2083. Considering the 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.