Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Church Stretton. Inevitably, the term of lease left shortens over time. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Church Stretton have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give due deliberation before delaying your Church Stretton lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold properties in Church Stretton with in excess of 100 years remaining on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
Using our service will provide you increased control over the value of your Church Stretton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Joshua owned a 2 bedroom flat in Church Stretton on the market with a lease of a few days over fifty eight years unexpired. Joshua informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were contacted by Mrs W Smith who, having owned a recently refurbished flat in Church Stretton in May 2001. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Identical properties in Church Stretton with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected yearly. The lease expired in 2076. Considering the 50 years as a residual term we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus professional charges.
In 2011 we were called by Mr B Nguyen who, having acquired a basement apartment in Church Stretton in October 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Church Stretton with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 billed quarterly. The lease came to a finish on 18 July 2087. Taking into account 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.