Stratford leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Stratford will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Stratford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Luca, started to get close to the 80-year mark with the lease on his basement flat in Stratford. Having purchased his home 19 years ago, the lease term was of no relevance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Luca was able to extend his lease at the eleventh hour in April. Luca and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If the lease had gone lower than eighty years, the sum would have increased by a minimum £900.
Last year we were phoned by Mr and Mrs. N Norbert , who purchased a studio apartment in Stratford in March 2003. 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 ninety years. Identical residencies in Stratford with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected per annum. The lease expired on 10 November 2085. Given that there were 60 years left we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Stratford residence is 12 Nutfield Road in July 2014. the Tribunal judged that the price to be paid by the applicants for the freehold interest should be £19,572 This case was in relation to 2 flats. The unexpired residue of the current lease was 72.02 years.