Stanmore leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Stanmore will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Stanmore with over one hundred 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Stanmore 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 conveyancing solicitor we work with provide it.
Last Spring Kai, started to get near to the 80-year mark with the lease on his one bedroom apartment in Stanmore. Having bought his property 19 years ago, the lease term was of no relevance. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Kai arranged for a lease extension at the eleventh hour last June. Kai and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had gone to less than 80 years, the figure would have gone up by a minimum £1,000.
Mr Finn King owned a garden apartment in Stanmore in September 1997. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparable premises in Stanmore with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease came to a finish on 13 March 2094. Given that there were 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Stanmore flat is 27B Hillside in February 2010. the resulting premium, all other aspects of the valuation having been agreed between the parties was set at £8,250 This case related to 1 flat. The unexpired term was 70.25 years.