There is no doubt about it a leasehold flat or house in Stanmore is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Stanmore will qualify for this right; however a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Stanmore with in excess of 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with procure Stanmore lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Spring James, started to get close to the 80-year threshold with the lease on his basement apartment in Stanmore. Having purchased his flat twenty years ago, the lease term was of little importance. Thankfully, he realised he needed to take action soon on a lease extension. James arranged for a lease extension just under the wire in March. James and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had dropped to less than eighty years, the figure would have increased by a minimum £900.
In 2013 we were e-mailed by Mr and Mrs. R Baker who, having acquired a purpose-built flat in Stanmore in May 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Stanmore with an extended lease were worth £166,800. The mid-range amount of ground rent was £50 billed yearly. The lease concluded on 17 April 2076. Having 50 years unexpired we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including legals.
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 was in relation to 1 flat. The unexpired lease term was 70.25 years.