With a long leasehold premises in Stokenchurch, you effectively rent it for a certain period of time. In recent years 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 may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Residents in Stokenchurch with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has below 80 years remaining, under the relevant statute the freeholder can calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Stokenchurch with more than 100 years remaining on the lease are often 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 upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Yorkshire Building Society |
The conveyancers that we work with procure Stokenchurch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Gabriel was the the leasehold proprietor of a studio flat in Stokenchurch on the market with a lease of just over 61 years remaining. Gabriel informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were contacted by Mrs Jasmine Sánchez who, having took over the lease of a one bedroom flat in Stokenchurch in July 2003. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Stokenchurch with an extended lease were valued around £196,400. The mid-range ground rent payable was £55 collected yearly. The lease lapsed on 4 September 2080. Having 54 years left we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus costs.
In 2011 we were approached by Ms S González who, having bought a newly refurbished apartment in Stokenchurch in May 2000. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Stokenchurch with a long lease were valued around £295,000. The average ground rent payable was £45 collected every twelve months. The lease terminated in 2100. Given that there were 74 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.