Main reasons to start your Stratford lease extension

Why you should start your Stratford lease extension today:

A Stratford lease depreciates with the years remaining on the lease.

Stratford leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Stratford will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Mortgage lenders will not grant a mortgage with a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Stratford lease extensions?

Lease extensions in Stratford can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in this area.

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 in-depth market knowledge procuring Stratford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Stratford Lease Extension Example Cases:

Arthur, Stratford, London,

Arthur was the the leasehold owner of a high value flat in Stratford on the market with a lease of fraction over 61 years outstanding. Arthur informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Stratford case:

Last month we were contacted by Mr Joseph Martínez , who owned a studio flat in Stratford in August 2004. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical homes in Stratford with a long lease were in the region of £210,600. The average amount of ground rent was £45 collected monthly. The lease ended in 2088. Considering the 62 years left we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.