Stratford Upon Avon leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Stratford Upon Avon will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Stratford Upon Avon with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with handle Stratford Upon Avon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy discussions with the freeholder of her garden flat in Stratford Upon Avon, Niamh started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction was concluded in February 2006. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. D Pérez , who owned a basement flat in Stratford Upon Avon in April 2003. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Stratford Upon Avon with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish on 12 July 2091. Taking into account 65 years remaining we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.
Last Christmas we were contacted by Mr P Torres , who completed a studio flat in Stratford Upon Avon in May 2006. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparative properties in Stratford Upon Avon with a long lease were valued about £191,400. The average amount of ground rent was £55 billed annually. The lease lapsed on 11 September 2080. Considering the 54 years remaining we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus fees.