It’s a harsh certainty that a Stroud residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Stroud property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Stroud will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Stroud with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Stroud can be a difficult process. We recommend you secure professional help from a lawyer 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 a wealth of experience 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.
Alex was the the leasehold proprietor of a 2 bedroom flat in Stroud being marketed with a lease of fraction over 59 years remaining. Alex informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alex to invoke his statutory right. Alex obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last month we were called by Mr and Mrs. U Ramírez , who completed a studio flat in Stroud in January 2006. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Identical residencies in Stroud with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 invoiced monthly. The lease ended in 2095. Having 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Last Winter we were phoned by Dr James Cooper , who completed a basement flat in Stroud in March 2010. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Similar residencies in Stroud with an extended lease were worth £254,200. The mid-range ground rent payable was £60 invoiced yearly. The lease end date was on 7 October 2075. Considering the 51 years left we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including legals.