Main reasons to commence your Stockbridge lease extension

Main reasons to start your Stockbridge lease extension today:

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

With a domestic leasehold property in Stockbridge, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Stockbridge with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has fewer than eighty years left, under the relevant statute the landlord is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to lend with a short lease

Lenders are making their criteria more stringent and many now require flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Considering many flats in Stockbridge were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

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

Irrespective of whether you are a tenant or a freeholder in Stockbridge,the lease extension experts 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 Stockbridge valuers.

Stockbridge Lease Extension Case Studies:

Mason, Stockbridge, Hampshire

14 months ago Mason, started to get close to the 80-year threshold with the lease on his studio apartment in Stockbridge. Having purchased his home 18 years ago, the lease term was of little concern. by good luck, he noticed he would soon be paying an inflated amount for Extending the lease. Mason was able to extend his lease just under the wire in July. Mason and the freeholder in the end settled on an amount of £6,000 . If he had missed the deadline, the figure would have become more costly by at least £1,000.

Stockbridge case:

In 2010 we were e-mailed by Ms G Khan who, having was assigned a lease of a garden flat in Stockbridge in February 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Stockbridge with a long lease were worth £242,600. The average ground rent payable was £45 collected monthly. The lease expired on 3 May 2093. Given that there were 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.

Stockbridge case:

Mr Riley Sharif moved into a basement flat in Stockbridge in July 1995. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative residencies in Stockbridge with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed on 21 January 2104. Given that there were 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.