The market value of a leasehold property in Stow on the Wold is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised well before the eighty year cut off point. Statute entitles Stow on the Wold qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Stow on the Wold,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stow on the Wold valuers.
Last Spring Hunter, started to get near to the 80-year mark with the lease on his first floor apartment in Stow on the Wold. Having purchased his home 18 years previously, the unexpired term was of minimal interest. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Hunter arranged for a lease extension just under the wire last March. Hunter and the landlord subsequently settled on a premium of £6,000 . If the lease had slipped lower than eighty years, the amount would have escalated by a minimum £1,025.
In 2013 we were approached by Mr and Mrs. R Dupont who, having owned a newly refurbished flat in Stow on the Wold in January 1995. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative flats in Stow on the Wold with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 billed annually. The lease ran out on 9 April 2095. Taking into account 69 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Dr J García was assigned a lease of a ground floor flat in Stow on the Wold in October 2010. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Comparable residencies in Stow on the Wold with a long lease were valued about £290,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out in 2106. Having 80 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.