Old Stratford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Old Stratford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Old Stratford you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Old Stratford with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Old Stratford can be a difficult process. We recommend you secure professional help from a lawyer and valuer 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 procuring Old Stratford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the landlord of her two bedroom apartment in Old Stratford, Abigail started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work was concluded in November 2008. The freeholder’s costs were kept to an absolute minimum.
Last November we were e-mailed by Dr Erin Parker , who bought a one bedroom flat in Old Stratford in May 2002. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Similar flats in Old Stratford with an extended lease were in the region of £264,000. The average amount of ground rent was £60 billed quarterly. The lease came to a finish in 2078. Having 53 years outstanding we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of legals.
In 2013 we were approached by Mr and Mrs. L Evans who, having bought a studio flat in Old Stratford in May 1998. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar homes in Old Stratford with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded in 2089. Given that there were 64 years remaining we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including legals.