The nearer a domestic lease in Stretton gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Stretton will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Stretton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Stretton 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Blake, came precariously near to the 80-year mark with the lease on his garden apartment in Stretton. In buying his flat two decades ago, the length of the lease was of little interest. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Blake arranged for a lease extension just ahead of time last July. Blake and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If the lease had slid below eighty years, the amount would have increased by at least £1,150.
Mr and Mrs. F Ali took over the lease of a basement flat in Stretton in July 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Stretton with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 billed per annum. The lease terminated on 2 October 2087. Taking into account 61 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
Last Winter we were approach by Mrs Courtney Bell , who took over the lease of a recently refurbished apartment in Stretton in September 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Stretton with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed per annum. The lease elapsed in 2098. Given that there were 72 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.