It’s an underpublicised truth that a Stretton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Stretton property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Stretton will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a residential leasehold with in excess of 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 premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Stretton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 Stretton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Jasper, came dangerously near to the 80-year threshold with the lease on his basement apartment in Stretton. Having purchased his flat two decades ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Jasper arranged for a lease extension just under the wire last August. Jasper and the landlord eventually settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have become more costly by at least £1,150.
Last May we were e-mailed by Mrs M Mitchell , who bought a ground floor apartment in Stretton in February 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Stretton with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease concluded in 2106. Having 80 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Mr and Mrs. M Turner was assigned a lease of a first floor apartment in Stretton in June 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable residencies in Stretton with a long lease were in the region of £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2086. Given that there were 60 years left we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus professional charges.