Chances are that where you own a flat in Stroud you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Retaining our service will provide you increased control over the value of your Stroud leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Felix owned a studio flat in Stroud on the market with a lease of a few days over 72 years left. Felix informally approached his freeholder a well known Manchester-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 a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2013 we were called by Mr Jude Jones who, having acquired a one bedroom apartment in Stroud in January 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Stroud with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease finished in 2077. Given that there were 51 years remaining we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including professional charges.
In 2013 we were e-mailed by Dr James Bell who, having moved into a one bedroom flat in Stroud in April 2002. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Stroud with an extended lease were in the region of £210,600. The average ground rent payable was £45 collected quarterly. The lease came to a finish in 2088. Having 62 years left we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus expenses.