Stony Stratford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Stony Stratford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Stony Stratford you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Santander | |
| TSB | |
| Yorkshire Building Society |
Engaging our service gives you increased control over the value of your Stony Stratford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her leasehold apartment in Stony Stratford, Aimee started the lease extension process as the 80 year threshold was rapidly approaching. The transaction was concluded in June 2010. The freeholder’s charges were kept to an absolute minimum.
Last month we were called by Mrs G Young , who purchased a newly refurbished flat in Stony Stratford in May 2010. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical homes in Stony Stratford with an extended lease were in the region of £198,800. The average ground rent payable was £55 billed quarterly. The lease elapsed on 8 January 2081. Having 55 years outstanding we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of fees.
Last Spring we were approach by Dr Riley Norbert , who was assigned a lease of a newly refurbished apartment in Stony Stratford in July 2010. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Stony Stratford with 100 year plus lease were valued about £295,000. The average amount of ground rent was £50 invoiced quarterly. The lease expired in 2101. Taking into account 75 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.