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Top reasons for Stow on the Wold lease extension


Top reasons for lease extension now:

A Stow on the Wold leasehold property depreciates with the years remaining on the lease.

Stow on the Wold leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Stow on the Wold enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Stow on the Wold you must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

Stow on the Wold property with a lease extension is almost the same value as a freehold

Leasehold residencies in Stow on the Wold with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders will not loan monies with a short lease

Lenders are inclined not lend on short residential leases. You most probably experience problems where you want to sell your flat in Stow on the Wold if the remaining term of your lease is below the criteria set by most lenders. Different lenders have varying requirements but on the whole they are looking for an unexpired term of at least seventy years.

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.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Yorkshire 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.

What makes us experts in Stow on the Wold lease extensions?

Irrespective of whether you are a tenant or a landlord in Stow on the Wold,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stow on the Wold valuers.

Stow on the Wold Lease Extension Example Cases:

Callum, Stow on the Wold, Gloucestershire,

Callum was the the leasehold owner of a studio flat in Stow on the Wold being sold with a lease of just over 59 years unexpired. Callum on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.

Stow on the Wold case:

In 2011 we were approached by Ms R Campbell who, having owned a studio apartment in Stow on the Wold in July 1996. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical residencies in Stow on the Wold with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease finished in 2084. Having 60 years unexpired we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.

Stow on the Wold case:

Last Winter we were e-mailed by Ms Nicole Jones , who was assigned a lease of a one bedroom apartment in Stow on the Wold in March 1999. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Stow on the Wold with an extended lease were worth £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2095. Taking into account 71 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.