Stanmore leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls 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 a solicitor will check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Retaining our service will provide you enhanced control over the value of your Stanmore leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold owner of a conversion apartment in Stanmore on the market with a lease of a few days over fifty eight years remaining. Caleb on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. Y Moore who, having owned a ground floor flat in Stanmore in July 1996. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative properties in Stanmore with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease ran out on 6 May 2094. Given that there were 69 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
An example of a Lease Extension decision 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 was 70.25 years.