Strawberry Hill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Strawberry Hill residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Strawberry Hill you should investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Strawberry Hill leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Lease extensions in Strawberry Hill can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Strawberry Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Max, came seriously close to the 80-year threshold with the lease on his purpose- built flat in Strawberry Hill. Having purchased his property twenty years previously, the length of the lease was of no interest. by good luck, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Max arranged for a lease extension just in the nick of time last August. Max and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If the lease had gone to less than 80 years, the figure would have escalated by a minimum £975.
Last year we were approach by Dr Hannah Hernández , who took over the lease of a ground floor flat in Strawberry Hill in August 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Strawberry Hill with an extended lease were valued around £205,000. The average ground rent payable was £50 collected per annum. The lease came to a finish in 2103. Having 78 years unexpired we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension decision for a Strawberry Hill property 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 lease term was 60.45 years.