When it comes to domestic leasehold property in Stamford Bridge, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years left. Anyone in Stamford Bridge with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the relevant legislation the freeholder can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Lease extensions in Stamford Bridge can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Stamford Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Joshua, came critically close to the 80-year threshold with the lease on his garden flat in Stamford Bridge. Having bought his home 19 years ago, the lease term was of little relevance. by good luck, he recognised he needed to take action soon on a lease extension. Joshua extended the lease just under the wire last September. Joshua and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he not met the deadline, the price would have gone up by at least £900.
Last Summer we were approach by Mr and Mrs. L Wilson , who owned a one bedroom flat in Stamford Bridge in May 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Identical flats in Stamford Bridge with an extended lease were valued around £285,000. The average amount of ground rent was £55 collected every twelve months. The lease elapsed on 2 October 2106. Having 80 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Dr Ben Murphy moved into a basement flat in Stamford Bridge in February 1996. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical premises in Stamford Bridge with 100 year plus lease were valued around £200,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease expired on 13 April 2086. Taking into account 60 years left we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including costs.