Stockwood 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 your lease becomes more expensive. It is the case that most Stockwood tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Stockwood you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Stockwood leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a 2 bedroom apartment in Stockwood being sold with a lease of fraction over 72 years outstanding. Reuben informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were contacted by Mr G Baker , who completed a ground floor apartment in Stockwood in September 1997. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative premises in Stockwood with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease concluded in 2086. Considering the 62 years outstanding we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including legals.
Last Christmas we were e-mailed by Mr and Mrs. J Richardson , who purchased a studio flat in Stockwood in July 1999. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative flats in Stockwood with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded in 2097. Having 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.