Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Strood. Inevitably, the length of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Strood have the right to extend the lease for an additional 90 years under statute. Please give careful deliberation before delaying your Strood lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Strood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of unsuccessful discussions with the freeholder of her two bedroom flat in Strood, Leah commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was concluded in January 2005. The freeholder’s charges were negotiated to a tad over 700 GBP.
Last year we were e-mailed by Ms I Carter , who was assigned a lease of a ground floor flat in Strood in August 1996. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Strood with a long lease were worth £240,600. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed in 2088. Given that there were 62 years left we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.
Last year we were contacted by Mr and Mrs. N Ricardo , who purchased a one bedroom apartment in Strood in November 2006. We are asked if we could approximate the price could be to prolong the lease by ninety years. Similar properties in Strood with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 collected monthly. The lease ran out in 2077. Given that there were 51 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.