With a residential leasehold premises in Stroud, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Stroud with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has under eighty years outstanding, under the current legislation the freeholder is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Stroud can be a difficult process. We recommend you obtain professional help 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 dealing with Stroud lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Evan, came critically near to the 80-year threshold with the lease on his first floor apartment in Stroud. Having purchased his property 18 years previously, the length of the lease was of minimal significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Evan arranged for a lease extension just in the nick of time in July. Evan and the freeholder subsequently settled on an amount of £6,000 . If he had missed the deadline, the price would have escalated by at least £950.
Last Summer we were called by Mr and Mrs. L Allen , who owned a one bedroom flat in Stroud in February 1999. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparative properties in Stroud with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced annually. The lease concluded in 2099. Given that there were 74 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last month we were called by Dr Ellie Clarke , who acquired a purpose-built flat in Stroud in July 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Stroud with a long lease were worth £166,400. The mid-range amount of ground rent was £60 billed quarterly. The lease came to a finish on 28 March 2079. Given that there were 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus legals.