Main reasons to start your Stockbridge lease extension

Why you should start your Stockbridge lease extension today:

A Stockbridge lease depreciates with the years remaining on the lease.

Stockbridge leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Stockbridge will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may not loan monies on a short lease

Mortgage lenders have set criteria when lending funds charged on leasehold property. Many will simply refrain from lending at all once an unexpired lease term falls below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years suitable security. As well as impacting your ability to sell, it is also relevant where you are wanting to refinance your Stockbridge property.

What makes us experts in Stockbridge lease extensions?

Regardless of whether you are a tenant or a freeholder in Stockbridge,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 experience and the close ties they enjoy with Stockbridge valuers.

Stockbridge Lease Extension Case Studies:

Oscar, Stockbridge, Hampshire,

Oscar owned a 2 bedroom apartment in Stockbridge on the market with a lease of a little over fifty eight years remaining. Oscar on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.

Stockbridge case:

In 2010 we were e-mailed by Mr and Mrs. J Turner who, having moved into a one bedroom flat in Stockbridge in June 1996. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical homes in Stockbridge with an extended lease were worth £173,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2081. Considering the 55 years outstanding we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.

Stockbridge case:

Mr and Mrs. M Murphy was assigned a lease of a purpose-built flat in Stockbridge in August 1997. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar flats in Stockbridge with an extended lease were in the region of £235,200. The average ground rent payable was £45 invoiced per annum. The lease expired in 2092. Having 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.