When it comes to long leasehold property in Stratford Upon Avon, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Residents in Stratford Upon Avon with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Stratford Upon Avon with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Stratford Upon Avon can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Stratford Upon Avon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the freeholder of her leasehold apartment in Stratford Upon Avon, Maisie started the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension was finalised in January 2015. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were approached by Mrs U Peterson who, having owned a one bedroom flat in Stratford Upon Avon in July 2008. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparable residencies in Stratford Upon Avon with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 invoiced quarterly. The lease expired on 12 October 2103. Given that there were 77 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
Last month we were contacted by Mr David Hill , who moved into a basement flat in Stratford Upon Avon in July 2003. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Stratford Upon Avon with an extended lease were valued around £260,200. The average amount of ground rent was £65 billed monthly. The lease expired on 6 July 2092. Considering the 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.