When it comes to residential leasehold property in Strood, you effectively rent it for a certain period of time. In recent years flat leases are usually granted 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 as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years remaining. Anyone in Strood with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has below 80 years outstanding, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Strood with over one hundred years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| Yorkshire Building Society |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Benjamin was the the leasehold proprietor of a conversion flat in Strood on the market with a lease of fraction over sixty years outstanding. Benjamin informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were phoned by Dr Sam Stewart who, having purchased a one bedroom apartment in Strood in October 1995. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical residencies in Strood with 100 year plus lease were in the region of £257,800. The average amount of ground rent was £65 invoiced yearly. The lease terminated in 2091. Given that there were 65 years left we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.
In 2013 we were phoned by Mr Austin Torres who, having purchased a ground floor flat in Strood in November 2005. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable premises in Strood with a long lease were worth £191,400. The mid-range amount of ground rent was £55 billed quarterly. The lease termination date was in 2080. Taking into account 54 years remaining we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of fees.