Stamford Bridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Stamford Bridge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Stamford Bridge you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Stamford Bridge leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Oscar was the the leasehold owner of a 2 bedroom flat in Stamford Bridge on the market with a lease of just over 59 years outstanding. Oscar informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Dr J Scott bought a basement apartment in Stamford Bridge in August 2000. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Stamford Bridge with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed per annum. The lease expired in 2086. Given that there were 60 years left we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including fees.
Last July we were approach by Mr and Mrs. C Davies , who was assigned a lease of a basement flat in Stamford Bridge in May 2006. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Stamford Bridge with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded in 2097. Given that there were 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.