For those whose Stechford home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank |
Irrespective of whether you are a tenant or a landlord in Stechford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stechford valuers.
Hugo was the the leasehold owner of a 2 bedroom apartment in Stechford being sold with a lease of a few days over 61 years outstanding. Hugo on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. S Walker who, having took over the lease of a one bedroom flat in Stechford in March 2001. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical properties in Stechford with a long lease were worth £243,000. The average ground rent payable was £65 billed annually. The lease terminated on 2 June 2089. Given that there were 63 years left we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of expenses.
Dr L Smith was assigned a lease of a purpose-built flat in Stechford in January 2003. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical premises in Stechford with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 23 October 2078. Having 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.