Unfortunately that a Long Stratton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Long Stratton property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Long Stratton will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Long Stratton with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Long Stratton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Long Stratton valuers.
Subsequent to protracted discussions with the freeholder of her studio flat in Long Stratton, Kirsty commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The legal work was finalised in June 2011. The freeholder’s charges were negotiated to below 450 GBP.
Dr T Ricardo took over the lease of a garden flat in Long Stratton in October 2009. The question was if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Long Stratton with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expired on 8 September 2105. Having 79 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
Mr and Mrs. V Bernard bought a basement flat in Long Stratton in November 2001. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Long Stratton with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 billed yearly. The lease concluded in 2094. Considering the 68 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.