Unfortunately that a Strawberry Hill residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Strawberry Hill property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Strawberry Hill will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Regardless of whether you are a tenant or a landlord in Strawberry Hill,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Strawberry Hill valuers.
Off the back of unsuccessful correspondence with the freeholder of her first floor flat in Strawberry Hill, Daisy commenced the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction completed in October 2012. The landlord’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mr D Evans who, having bought a purpose-built apartment in Strawberry Hill in October 2000. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable flats in Strawberry Hill with an extended lease were valued about £210,000. The average ground rent payable was £50 collected quarterly. The lease terminated on 16 February 2102. Given that there were 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension decision 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 was in relation to 1 flat. The remaining number of years on the lease was 60.45 years.