Stratford leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Stratford will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Stratford,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 experience and the close ties they enjoy with Stratford valuers.
After unsuccessful discussions with the freeholder of her leasehold flat in Stratford, Kayleigh commenced the lease extension process as the eighty year deadline was quickly approaching. The transaction was concluded in June 2013. The freeholder’s charges were kept to an absolute minimum.
Last year we were called by Mrs Bethany Collins , who purchased a ground floor apartment in Stratford in November 2005. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar homes in Stratford with 100 year plus lease were valued about £235,200. The average ground rent payable was £45 billed per annum. The lease ran out on 26 October 2092. Taking into account 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Stratford residence is 12 Nutfield Road in July 2014. the Tribunal judged that the price to be paid by the applicants for the freehold interest should be £19,572 This case related to 2 flats. The unexpired term as at the valuation date was 72.02 years.