Stratford leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Stratford will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Skipton Building Society | |
| TSB |
The conveyancing solicitors that we work with handle Stratford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Logan, started to get close to the 80-year mark with the lease on his two bedroom flat in Stratford. Having bought his flat 19 years previously, the lease term was of little interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Logan extended the lease just in the nick of time in June. Logan and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,125.
In 2009 we were contacted by Mr and Mrs. T Collins who, having bought a one bedroom apartment in Stratford in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Stratford with 100 year plus lease were in the region of £186,000. The average ground rent payable was £65 billed per annum. The lease ran out on 22 May 2084. Having 58 years remaining we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 plus legals.
An example of a Freehold Enfranchisement decision 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 affected 2 flats. The unexpired term was 72.02 years.