Stanmore leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Stanmore residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Stanmore you would be well advised to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Stanmore flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Stanmore can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Stanmore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted discussions with the freeholder of her ground floor flat in Stanmore, Sarah initiated the lease extension process as the eighty year deadline was swiftly advancing. The transaction was finalised in May 2005. The landlord’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Mr Samuel Moreau who, having acquired a garden flat in Stanmore in October 1999. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical homes in Stanmore with a long lease were worth £243,000. The average amount of ground rent was £65 collected quarterly. The lease ended on 19 April 2089. Given that there were 63 years left we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including expenses.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The unexpired lease term was 70.25 years.