Main reasons to commence your Stockbridge Village lease extension

Why you should commence your Stockbridge Village lease extension today:

A Stockbridge Village leasehold property depreciates with the years remaining on the lease.

Stockbridge Village residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.

Stockbridge Village property with a lease extension is almost the same value as a freehold

Leasehold premises in Stockbridge Village with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not grant a mortgage with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold homes. Many will simply not lend at all once the residual lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years suitable security. In addition to impacting your ability to sell, it is also relevant where you are wanting to remortgage your Stockbridge Village home.

Get in touch with one of our Stockbridge Village lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Stockbridge Village,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stockbridge Village valuers.

Stockbridge Village Lease Extension Case Summaries:

Stanley, Stockbridge Village, Merseyside,

Stanley owned a 2 bedroom apartment in Stockbridge Village being sold with a lease of just over 72 years left. Stanley informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.

Stockbridge Village case:

In 2012 we were phoned by Mr and Mrs. I Kelly who, having purchased a ground floor flat in Stockbridge Village in August 2012. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Stockbridge Village with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out on 6 March 2102. Given that there were 76 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.

Stockbridge Village case:

In 2009 we were phoned by Dr Reuben David who, having purchased a purpose-built apartment in Stockbridge Village in November 2007. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Stockbridge Village with a long lease were worth £176,200. The average ground rent payable was £65 collected per annum. The lease ended on 23 June 2082. Taking into account 56 years left we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.