Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Stanmore. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Stanmore have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. You should give careful attention before putting off your Stanmore lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
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 ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Stanmore,the lease extension experts that we work with will always be willing 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.
Caleb owned a 2 bedroom flat in Stanmore on the market with a lease of a little over 61 years left. Caleb on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2012 we were phoned by Mr G Ricardo who, having was assigned a lease of a garden apartment in Stanmore in October 1996. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar premises in Stanmore with a long lease were valued around £174,200. The mid-range ground rent payable was £55 billed per annum. The lease finished in 2077. Having 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
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 remaining number of years on the lease was 70.25 years.