Church Stretton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Church Stretton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Church Stretton you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Church Stretton with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Church Stretton can be a difficult process. We recommend you procure professional help from a lawyer 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 in-depth market knowledge procuring Church Stretton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum was the the leasehold proprietor of a conversion flat in Church Stretton being sold with a lease of just over 72 years left. Callum informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
In 2011 we were contacted by Dr Isaac Lefebvre who, having was assigned a lease of a ground floor apartment in Church Stretton in July 2007. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparative residencies in Church Stretton with an extended lease were valued around £260,000. The average amount of ground rent was £50 billed monthly. The lease terminated on 22 January 2097. Considering the 72 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
Last Spring we were e-mailed by Mr and Mrs. W Morel , who was assigned a lease of a garden flat in Church Stretton in May 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Church Stretton with an extended lease were worth £261,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease finished on 6 May 2077. Considering the 52 years as a residual term we approximated the premium to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of expenses.