Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Church Stretton. Clearly, the length of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the flat or house has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Church Stretton have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Church Stretton lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Church Stretton with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Church Stretton can be a difficult process. We recommend you obtain professional help 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 dealing with 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.
Following unsuccessful discussions with the freeholder of her one bedroom apartment in Church Stretton, Rachel started the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension was concluded in October 2006. The freeholder’s fees were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. S Baker , who was assigned a lease of a studio apartment in Church Stretton in May 1996. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Church Stretton with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease concluded on 12 May 2085. Considering the 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
Dr Milo Bonnet moved into a basement apartment in Church Stretton in September 2008. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar premises in Church Stretton with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 billed yearly. The lease terminated on 17 June 2096. Given that there were 71 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.