The re-sale value of a leasehold property in Stanmore depends on how long the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded well before the eighty year threshold. Current legislation entitles Stanmore qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Stanmore with over 100 years left on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Retaining our service gives you enhanced control over the value of your Stanmore leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Dexter, came critically near to the 80-year threshold with the lease on his first floor apartment in Stanmore. In buying his home two decades ago, the unexpired term was of minimal significance. Luckily, he recognised he would soon be paying way over the odds for Extending the lease. Dexter arranged for a lease extension at the eleventh hour in March. Dexter and the freeholder eventually agreed on a premium of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £900.
Last year we were called by Mrs Olivia Clark , who moved into a one bedroom apartment in Stanmore in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Stanmore with an extended lease were worth £198,800. The mid-range ground rent payable was £55 billed yearly. The lease lapsed on 26 January 2081. Given that there were 55 years remaining we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.
An example of a Lease Extension decision for a Stanmore flat 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 residue of the current lease was 70.25 years.