Stamford Bridge leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Stamford Bridge will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Stamford Bridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim owned a high value flat in Stamford Bridge on the market with a lease of fraction over 72 years unexpired. Ibrahim informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2011 we were called by Mr V Roberts who, having took over the lease of a studio flat in Stamford Bridge in November 2009. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Identical premises in Stamford Bridge with a long lease were valued around £176,200. The average amount of ground rent was £65 invoiced per annum. The lease finished on 5 January 2082. Given that there were 56 years remaining we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of expenses.
In 2013 we were contacted by Dr H Gray who, having completed a studio flat in Stamford Bridge in January 2000. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical flats in Stamford Bridge with a long lease were in the region of £237,600. The average ground rent payable was £45 collected per annum. The lease concluded in 2093. Having 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.