Stanmore leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Stanmore enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Stanmore you would be well advised to check if your lease has between 70 and ninety years left. There are good reasons why a Stanmore leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Stanmore can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Stanmore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan was the the leasehold owner of a high value apartment in Stanmore being marketed with a lease of a little over 72 years left. Dylan informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2009 we were phoned by Mrs Katie Girard who, having acquired a ground floor flat in Stanmore in October 2006. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical homes in Stanmore with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated on 19 June 2086. Taking into account 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus fees.
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.