The market value of Church Stretton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Church Stretton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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.
Last October Mason, came perilously near to the 80-year mark with the lease on his ground floor apartment in Church Stretton. In buying his property 19 years ago, the lease term was of little relevance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Mason arranged for a lease extension just ahead of time in July. Mason and the landlord eventually settled on sum of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £925.
Last Winter we were approach by Mr and Mrs. B Murphy , who moved into a basement flat in Church Stretton in August 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Church Stretton with a long lease were valued about £285,000. The average ground rent payable was £55 billed annually. The lease came to a finish in 2104. Having 79 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
Dr R White bought a garden apartment in Church Stretton in October 2010. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Church Stretton with an extended lease were valued around £193,400. The average ground rent payable was £65 collected per annum. The lease expiry date was in 2084. Considering the 59 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus fees.