Main reasons to start your Stilton lease extension

Why you should start your Stilton lease extension today:

Increase your lease and increase your Stilton property value

The market value of a leasehold property in Stilton depends on how long the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation entitles Stilton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Stilton with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not issue a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Stilton lease extensions?

Irrespective of whether you are a tenant or a freeholder in Stilton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stilton valuers.

Stilton Lease Extension Case Summaries:

Maisie, Stilton, Cambridgeshire,

After lengthy negotiations with the landlord of her basement apartment in Stilton, Maisie initiated the lease extension process as the eighty year threshold was rapidly coming. The legal work was finalised in November 2006. The freeholder’s costs were negotiated to approximately 550 GBP.

Stilton case:

Last June we were contacted by Dr N André , who was assigned a lease of a first floor flat in Stilton in November 2005. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar residencies in Stilton with an extended lease were in the region of £254,200. The average ground rent payable was £60 billed yearly. The lease lapsed in 2077. Given that there were 51 years remaining we calculated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of legals.

Stilton case:

In 2013 we were called by Mr and Mrs. U Morgan who, having acquired a ground floor apartment in Stilton in April 2011. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable properties in Stilton with 100 year plus lease were valued about £210,600. The average ground rent payable was £45 collected monthly. The lease concluded on 21 November 2088. Having 62 years outstanding we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.