Stroud leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Stroud will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Stroud with over 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Stroud,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stroud valuers.
Two years ago Adam, came critically close to the 80-year mark with the lease on his purpose- built apartment in Stroud. In buying his flat two decades ago, the lease term was of little interest. Luckily, he noticed he needed to take action soon on a lease extension. Adam was able to extend his lease just in the nick of time in September. Adam and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had fallen below eighty years, the price would have gone up by a minimum £850.
Mr and Mrs. W Wood bought a studio flat in Stroud in April 2004. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Similar homes in Stroud with a long lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished on 12 November 2094. Considering the 68 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Dr C Bernard was assigned a lease of a ground floor flat in Stroud in March 2012. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Stroud with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease end date was in 2105. Having 79 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.