Stanmore leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher premium will be payable. Leasehold owners in Stanmore will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Stanmore with more than one hundred years left on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Stanmore leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
George was the the leasehold owner of a conversion flat in Stanmore on the market with a lease of a few days over 72 years outstanding. George informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord 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 £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were George to invoke his statutory right. George procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last Spring we were called by Mr and Mrs. R Cooper , who purchased a one bedroom apartment in Stanmore in April 2011. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable flats in Stanmore with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease expiry date was in 2098. Taking into account 73 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Stanmore residence 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 number of years remaining on the existing lease(s) was 70.25 years.