When it comes to long leasehold property in Stanmore, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Residents in Stanmore with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has less than 80 years outstanding, under the current Act the freeholder can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Stanmore with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Stanmore,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stanmore valuers.
Off the back of unsuccessful correspondence with the landlord of her studio apartment in Stanmore, Bethan initiated the lease extension process as the 80 year deadline was rapidly advancing. The transaction was concluded in January 2010. The freeholder’s charges were restricted to less than 650 GBP.
Mr Harrison Nelson owned a basement flat in Stanmore in May 2005. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparative homes in Stanmore with a long lease were in the region of £210,000. The average ground rent payable was £50 collected per annum. The lease finished on 10 September 2105. Having 80 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Stanmore residence 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 lease term was 70.25 years.