When it comes to long leasehold property in Strood, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Leasehold owners in Strood with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has fewer than eighty years outstanding, under the relevant statute the freeholder can calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Strood with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 service charges warrant 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Strood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold owner of a high value apartment in Strood on the market with a lease of just over 61 years outstanding. Jack informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Jack to invoke his statutory right. Jack procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Summer we were called by Mr O Sharif , who purchased a basement apartment in Strood in June 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Identical homes in Strood with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 billed annually. The lease ended on 12 March 2098. Considering the 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
Last Christmas we were called by Mr and Mrs. U Clark , who purchased a basement apartment in Strood in March 2009. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable homes in Strood with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 invoiced annually. The lease lapsed in 2087. Considering the 61 years remaining we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including costs.