There is no doubt about it a leasehold flat or house in Stanmore is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Stanmore will qualify for this right; however a conveyancing solicitor should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Stanmore with in excess of one hundred years outstanding 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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:
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Regardless of whether you are a tenant or a freeholder in Stanmore,the lease extension experts that we work with will always be prepared 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.
Ibrahim owned a conversion apartment in Stanmore being sold with a lease of a little over 59 years unexpired. Ibrahim on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Spring we were contacted by Mr and Mrs. C Roberts , who was assigned a lease of a garden apartment in Stanmore in April 2009. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical residencies in Stanmore with a long lease were valued about £206,200. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish on 28 November 2082. Having 56 years left we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
An example of a Lease Extension case 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 affected 1 flat. The unexpired lease term was 70.25 years.