When it comes to long leasehold premises in Strawberry Hill, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Anyone in Strawberry Hill with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has under 80 years left, under the relevant statute the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Strawberry Hill with more than one hundred years outstanding 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Strawberry Hill leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel was the the leasehold owner of a high value flat in Strawberry Hill being sold with a lease of a little over 59 years remaining. Daniel informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2009 we were phoned by Mrs F Sharif who, having purchased a first floor flat in Strawberry Hill in March 2001. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparable residencies in Strawberry Hill with an extended lease were valued around £223,400. The mid-range ground rent payable was £60 billed quarterly. The lease ended in 2084. Considering the 59 years left we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus fees.
An example of a Lease Extension case for a Strawberry Hill premises 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 unexpired residue of the current lease was 60.45 years.