Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Stilton. Inevitably, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Stilton have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give due attention before putting off your Stilton lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Stilton with in excess of one hundred years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Stilton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful negotiations with the freeholder of her first floor apartment in Stilton, Emily initiated the lease extension process as the eighty year deadline was rapidly approaching. The lease extension completed in September 2012. The landlord’s fees were negotiated to under 650 GBP.
In 2012 we were phoned by Dr F Sharif who, having owned a garden apartment in Stilton in February 2007. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative residencies in Stilton with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed quarterly. The lease elapsed in 2091. Having 66 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
In 2013 we were phoned by Ms K Parker who, having owned a basement flat in Stilton in May 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Stilton with a long lease were worth £280,000. The average ground rent payable was £55 invoiced yearly. The lease expired in 2102. Considering the 77 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.