Stanmore leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Stanmore will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Stanmore,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanmore valuers.
In the wake of 6 months of protracted discussions with the freeholder of her ground floor apartment in Stanmore, Kayleigh initiated the lease extension process as the 80 year threshold was fast approaching. The legal work completed in September 2008. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Mr Adam Murphy who, having took over the lease of a one bedroom flat in Stanmore in March 1996. The question was if we could approximate the price could be to extend the lease by 90 years. Similar premises in Stanmore with a long lease were valued around £216,000. The average amount of ground rent was £60 collected monthly. The lease terminated on 22 March 2084. Having 58 years remaining we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Stanmore premises 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 was in relation to 1 flat. The remaining number of years on the lease was 70.25 years.