With a residential leasehold premises in Stroud, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years remaining. Anyone in Stroud with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the current statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Stroud with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Stroud can be a difficult process. We recommend you procure professional help from a conveyancer 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 a wealth of experience 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.
Subsequent to protracted correspondence with the landlord of her ground floor flat in Stroud, Natasha initiated the lease extension process as the eighty year mark was fast advancing. The legal work was concluded in March 2010. The landlord’s costs were restricted to less than 500 GBP.
In 2013 we were phoned by Mr and Mrs. F Ramírez who, having took over the lease of a purpose-built apartment in Stroud in July 1998. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparative flats in Stroud with an extended lease were valued around £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease end date was on 14 November 2082. Having 56 years remaining we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus professional charges.
In 2010 we were phoned by Dr David Lewis who, having took over the lease of a ground floor flat in Stroud in February 1996. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Stroud with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 billed quarterly. The lease concluded on 6 May 2093. Having 67 years remaining we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including legals.