Strawberry Hill leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Strawberry Hill will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Strawberry Hill,the lease extension solicitors 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 Strawberry Hill valuers.
Last October Reuben, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Strawberry Hill. Having bought his home two decades ago, the unexpired term was of minimal relevance. by good luck, he recognised he would imminently be paying an inflated amount for a lease extension. Reuben extended the lease at the eleventh hour in August. Reuben and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If the lease had slid to less than eighty years, the amount would have increased by at least £850.
Last Winter we were approach by Dr Callum Stewart , who purchased a garden apartment in Strawberry Hill in September 2003. The question was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable residencies in Strawberry Hill with a long lease were worth £206,200. The average ground rent payable was £60 invoiced annually. The lease concluded in 2082. Having 56 years unexpired we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including fees.
An example of a Lease Extension decision for a Strawberry Hill flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case affected 1 flat. The remaining number of years on the lease was 60.45 years.