Stow on the Wold 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 becomes more expensive. Legislation has been in place for sometime now allowing qualifying Stow on the Wold residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Stow on the Wold you should investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Stow on the Wold leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Stow on the Wold can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring 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.
In recent months Benjamin, started to get close to the 80-year threshold with the lease on his first floor flat in Stow on the Wold. Having purchased his property two decades ago, the length of the lease was of minimal interest. by good luck, he recognised he needed to take action soon on a lease extension. Benjamin was able to extend his lease just in the nick of time last March. Benjamin and the landlord in the end settled on a premium of £5,000 . If the lease had gone to less than 80 years, the figure would have escalated by at least £1,000.
Mr and Mrs. K Turner was assigned a lease of a ground floor flat in Stow on the Wold in September 2000. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparative residencies in Stow on the Wold with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended in 2104. Considering the 78 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Ms J Roux bought a basement flat in Stow on the Wold in June 2009. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Identical flats in Stow on the Wold with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 collected per annum. The lease expiry date was in 2084. Taking into account 58 years unexpired we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.