The re-sale value of a leasehold property in Stow on the Wold depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year cut off point. Leasehold Reform legislation enables Stow on the Wold qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Stow on the Wold with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you increased control over the value of your Stow on the Wold leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her leasehold apartment in Stow on the Wold, Jessica started the lease extension process as the eighty year mark was quickly advancing. The legal work was finalised in October 2010. The landlord’s costs were kept to an absolute minimum.
In 2014 we were called by Mr and Mrs. H Evans who, having was assigned a lease of a first floor flat in Stow on the Wold in November 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Stow on the Wold with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 collected yearly. The lease terminated in 2091. Having 65 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.
In 2012 we were approached by Mr and Mrs. G Nelson who, having bought a one bedroom flat in Stow on the Wold in February 2005. We are asked if we could approximate the price would be for a 90 year lease extension. Identical premises in Stow on the Wold with an extended lease were worth £275,000. The average amount of ground rent was £55 billed monthly. The lease terminated on 22 June 2102. Taking into account 76 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.