As the length of the unexpired term of a Long Stratton domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than one hundred years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Long Stratton will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
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 all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Long Stratton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Long Stratton valuers.
Eliot was the the leasehold owner of a high value apartment in Long Stratton being sold with a lease of a little over 59 years left. Eliot informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were called by Dr Y Collins who, having took over the lease of a basement apartment in Long Stratton in January 1997. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable premises in Long Stratton with a long lease were in the region of £250,400. The average ground rent payable was £65 invoiced monthly. The lease expired in 2089. Given that there were 64 years left we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Dr B Stewart owned a ground floor apartment in Long Stratton in August 2001. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative premises in Long Stratton with 100 year plus lease were valued around £184,000. The average amount of ground rent was £55 billed yearly. The lease finished on 28 October 2078. Taking into account 53 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.