The market value of a leasehold property in Strawberry Hill depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the 80 year cut off point. Current legislation enables Strawberry Hill qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Strawberry Hill can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 Strawberry Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the landlord of her basement apartment in Strawberry Hill, Morgan initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work was finalised in September 2011. The landlord’s charges were kept to an absolute minimum.
Mrs Megan Green took over the lease of a purpose-built flat in Strawberry Hill in November 1995. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Identical premises in Strawberry Hill with an extended lease were worth £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2102. Taking into account 77 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
An example of a Lease Extension matter before the tribunal for a Strawberry Hill premises is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case affected 1 flat. The unexpired residue of the current lease was 60.45 years.