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Why you should commence your Stanmore lease extension

Main reasons to commence your Stanmore lease extension today:

Increase your lease and increase your Stanmore property value

The value of Stanmore leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than eighty years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Stanmore with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may not loan monies on a short lease

The trend since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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.
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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Stanmore?

Regardless of whether you are a tenant or a freeholder in Stanmore,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanmore valuers.

Stanmore Lease Extension Case Studies:

Kyle, Stanmore, North West London

In recent months Kyle, came precariously near to the 80-year threshold with the lease on his garden flat in Stanmore. In buying his property 19 years ago, the unexpired term was of minimal significance. by good luck, he became aware that he needed to take action soon on Extending the lease. Kyle was able to extend his lease just under the wire in January. Kyle and the freeholder via the management company eventually agreed on an amount of £6,000 . If the lease had dropped lower than eighty years, the figure would have increased by at least £1,050.

Stanmore case:

Mr and Mrs. W Martin took over the lease of a purpose-built flat in Stanmore in February 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Stanmore with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced annually. The lease elapsed on 6 February 2094. Taking into account 70 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.

Decision in Brent

An example of a Lease Extension matter before the tribunal for a Stanmore property 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 affected 1 flat. The unexpired term as at the valuation date was 70.25 years.