Stratford Upon Avon leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Stratford Upon Avon tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Stratford Upon Avon you would be well advised to check if your lease has between seventy and ninety years left. There are good reasons why a Stratford Upon Avon leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you better control over the value of your Stratford Upon Avon leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her first floor flat in Stratford Upon Avon, Isabella commenced the lease extension process as the eighty year deadline was quickly coming. The transaction completed in April 2013. The freeholder’s fees were kept to an absolute minimum.
Dr Aiden Roux acquired a basement flat in Stratford Upon Avon in February 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Stratford Upon Avon with 100 year plus lease were in the region of £201,200. The average ground rent payable was £55 collected yearly. The lease expired in 2081. Taking into account 56 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
In 2012 we were called by Ms E Cook who, having bought a one bedroom flat in Stratford Upon Avon in January 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Stratford Upon Avon with a long lease were worth £300,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2101. Taking into account 76 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.