Main reasons to start your Stroud lease extension

Main reasons to commence your Stroud lease extension today:

A Stroud leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold flat or house in Stroud is a wasting asset as a result of the shortening lease. If the lease has, over 100 years to run then this decrease may be negligible 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 known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Stroud will qualify for this right; nevertheless a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Stroud property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not grant a mortgage with a short lease

Lenders are really clamping down as regards to homes in Stroud with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus narrowing the amount of prospective purchasers.

Get in touch with one of our Stroud lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Stroud,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Stroud valuers.

Stroud Lease Extension Example Cases:

Poppy, Stroud, Gloucestershire,

Following unsuccessful discussions with the landlord of her one bedroom flat in Stroud, Poppy started the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work completed in April 2007. The freeholder’s charges were restricted to approximately 700 GBP.

Stroud case:

Last Christmas we were approach by Mr and Mrs. Y Robinson , who acquired a studio apartment in Stroud in March 2009. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Stroud with 100 year plus lease were worth £193,400. The average ground rent payable was £65 billed every twelve months. The lease finished in 2085. Taking into account 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.

Stroud case:

Last month we were phoned by Mr Stanley King , who was assigned a lease of a one bedroom apartment in Stroud in October 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Stroud with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated on 2 February 2096. Having 70 years remaining we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 plus fees.