Stratford Upon Avon leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Stratford Upon Avon will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Stratford Upon Avon with in excess of one hundred 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Stratford Upon Avon,the lease extension lawyers 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 Stratford Upon Avon valuers.
Nathan owned a high value flat in Stratford Upon Avon being marketed with a lease of fraction over 72 years unexpired. Nathan on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
In 2013 we were approached by Mr and Mrs. E Ward who, having took over the lease of a one bedroom apartment in Stratford Upon Avon in February 2001. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar homes in Stratford Upon Avon with a long lease were valued around £243,000. The average amount of ground rent was £65 collected quarterly. The lease finished on 11 March 2088. Considering the 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of costs.
In 2010 we were called by Mrs Niamh Laurent who, having bought a garden flat in Stratford Upon Avon in May 2010. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative homes in Stratford Upon Avon with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 collected per annum. The lease concluded on 6 April 2077. Taking into account 52 years remaining we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.