The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Stroud may extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Stroud lease extension. Putting off the costs now simply increases the price you will ultimately have to pay to extend the lease.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Stroud can be a difficult process. We recommend you secure 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.
Half a year ago Eli, came very near to the 80-year threshold with the lease on his purpose- built apartment in Stroud. In buying his home two decades ago, the unexpired term was of little importance. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Eli was able to extend his lease just under the wire in January. Eli and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If the lease had gone to less than 80 years, the price would have become more exhorbitant by a minimum £1,100.
Last Autumn we were e-mailed by Mr D François , who acquired a purpose-built apartment in Stroud in July 2001. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Comparative properties in Stroud with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed in 2098. Having 72 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Mr and Mrs. K Martinez was assigned a lease of a studio apartment in Stroud in October 1999. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable residencies in Stroud with 100 year plus lease were worth £261,600. The mid-range amount of ground rent was £60 billed monthly. The lease ended in 2078. Considering the 52 years remaining we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including professional charges.