Stow on the Wold leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Stow on the Wold will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Stow on the Wold with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by 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. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Stow on the Wold can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 Stow on the Wold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Jason, came dangerously close to the 80-year mark with the lease on his one bedroom flat in Stow on the Wold. Having purchased his property twenty years ago, the length of the lease was of minimal importance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Jason extended the lease just under the wire last March. Jason and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he not met the deadline, the price would have escalated by a minimum £975.
Last November we were contacted by Dr M Lee , who completed a one bedroom apartment in Stow on the Wold in June 2010. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparative homes in Stow on the Wold with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed on 6 February 2088. Taking into account 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.
Ms Rachael Moreau moved into a purpose-built apartment in Stow on the Wold in October 2006. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Stow on the Wold with 100 year plus lease were valued about £265,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish on 23 October 2099. Given that there were 73 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.