It’s a harsh truth that a Stanmore residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Stanmore property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Stanmore will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stanmore valuers.
Aarav was the the leasehold proprietor of a 2 bedroom flat in Stanmore on the market with a lease of fraction over 72 years unexpired. Aarav on an informal basis approached his freeholder a well known Bristol-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 rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2014 we were contacted by Mrs Stephanie Sharif who, having bought a purpose-built flat in Stanmore in February 1995. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative properties in Stanmore with 100 year plus lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out on 12 July 2092. Taking into account 66 years left we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of 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 was in relation to 1 flat. The unexpired term as at the valuation date was 70.25 years.