When it comes to long leasehold property in Stoke Gifford, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Leasehold owners in Stoke Gifford with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has below 80 years remaining, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Stoke Gifford with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Stoke Gifford can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience procuring Stoke Gifford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Oscar, came dangerously near to the eighty-year threshold with the lease on his leasehold apartment in Stoke Gifford. In buying his flat two decades ago, the unexpired term was of little concern. Luckily, it dawned on him that he would soon be paying an inflated amount for a lease extension. Oscar arranged for a lease extension just ahead of time last January. Oscar and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,025.
Last Autumn we were called by Mr and Mrs. G Allen , who owned a first floor apartment in Stoke Gifford in September 2002. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical homes in Stoke Gifford with a long lease were valued about £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease expiry date was in 2089. Having 64 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including professional charges.
Last Winter we were phoned by Ms Stephanie Bailey , who bought a first floor flat in Stoke Gifford in November 1998. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable flats in Stoke Gifford with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease finished on 2 July 2100. Given that there were 75 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.