On the balance of probabilities where you own a flat in Stalybridge you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
The conveyancers that we work with handle Stalybridge 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.
During the course of the last few months James, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Stalybridge. In buying his property 18 years previously, the lease term was of little bearing. Thankfully, he noticed he would imminently be paying way over the odds for a lease extension. James was able to extend his lease at the eleventh hour last June. James and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he failed to meet the deadline, the price would have increased by a minimum £1,075.
In 2009 we were contacted by Mrs Abigail Adams who, having acquired a ground floor apartment in Stalybridge in May 2005. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical properties in Stalybridge with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 collected quarterly. The lease lapsed on 6 March 2104. Given that there were 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
Ms E Harris bought a studio apartment in Stalybridge in April 2005. The question was if we could approximate the premium would be for a ninety year extension to my lease. Identical homes in Stalybridge with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed in 2084. Given that there were 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.