As the length of the unexpired term of a Stowmarket domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Stowmarket will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Stowmarket with more than 100 years left 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Stowmarket,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stowmarket valuers.
Trailing unsuccessful discussions with the freeholder of her first floor apartment in Stowmarket, Grace started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was concluded in March 2009. The landlord’s fees were restricted to about 700 GBP.
Last Autumn we were e-mailed by Dr Chelsea Alexander , who moved into a purpose-built flat in Stowmarket in August 1995. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Comparable homes in Stowmarket with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease terminated in 2099. Taking into account 73 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
Mr P Young took over the lease of a recently refurbished flat in Stowmarket in April 2004. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative residencies in Stowmarket with a long lease were valued about £243,000. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2089. Considering the 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.