Stokenchurch leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Stokenchurch will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Stokenchurch with in excess of one hundred years unexpired 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 premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Stokenchurch,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 experience and the close ties they enjoy with Stokenchurch valuers.
Last Winter Jamie, came dangerously near to the 80-year mark with the lease on his purpose- built flat in Stokenchurch. In buying his flat two decades ago, the unexpired term was of little significance. Thankfully, he recognised he needed to take action soon on Extending the lease. Jamie extended the lease just under the wire last July. Jamie and the freeholder via the management company ultimately settled on a premium of £6,000 . If the lease had dipped below 80 years, the premium would have gone up by at least £975.
Dr Caleb Brooks moved into a studio flat in Stokenchurch in August 2012. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Stokenchurch with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease end date was on 26 August 2106. Taking into account 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last Summer we were phoned by Dr Adam García , who purchased a first floor flat in Stokenchurch in January 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Stokenchurch with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease lapsed on 23 May 2095. Given that there were 69 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.