The closer a domestic lease in Stroud gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 125 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Stroud will meet the qualifying criteria; however a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Stroud with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 procure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Stroud lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie was the the leasehold proprietor of a high value apartment in Stroud on the market with a lease of fraction over fifty eight years left. Jamie informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Jamie to invoke his statutory right. Jamie procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. O Bailey moved into a purpose-built apartment in Stroud in June 2001. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Stroud with an extended lease were valued about £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease lapsed on 13 November 2105. Taking into account 79 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
Dr Isobel Edwards completed a ground floor apartment in Stroud in March 2004. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparable residencies in Stroud with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 billed every twelve months. The lease ended on 22 March 2085. Taking into account 59 years unexpired we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.