Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Long Stratton. Clearly, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Long Stratton have the right to extend the lease for an additional ninety years under statute. Please give due deliberation before delaying your Long Stratton lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Long Stratton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Long Stratton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Nathan, came very close to the 80-year threshold with the lease on his garden flat in Long Stratton. In buying his property twenty years previously, the lease term was of little relevance. by good luck, he recognised he would soon be paying an escalated premium for Extending the lease. Nathan extended the lease just under the wire last January. Nathan and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had slipped below eighty years, the premium would have escalated by a minimum £1,125.
Last Spring we were approach by Mr George Robinson , who bought a one bedroom flat in Long Stratton in August 2001. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparable homes in Long Stratton with an extended lease were in the region of £166,800. The average ground rent payable was £50 collected yearly. The lease elapsed on 13 May 2076. Given that there were 50 years left we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.
Last Summer we were approach by Mr and Mrs. V Allen , who bought a garden flat in Long Stratton in August 2011. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Long Stratton with an extended lease were valued around £280,000. The average amount of ground rent was £45 collected quarterly. The lease finished on 6 October 2096. Having 70 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.