Main reasons to commence your Stilton lease extension

Main reasons to commence your Stilton lease extension today:

Increase your lease and increase your Stilton property value

Stilton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Stilton tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Stilton you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

Stilton property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Stilton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to grant a mortgage with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Stilton lease extension solicitors or enfranchisement solicitors

Lease extensions in Stilton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 Stilton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Stilton Lease Extension Case Studies:

Katherine, Stilton, Cambridgeshire,

In the wake of 6 months of unsuccessful discussions with the freeholder of her ground floor flat in Stilton, Katherine initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in November 2014. The freeholder’s charges were kept to an absolute minimum.

Stilton case:

Mr and Mrs. Y Flores was assigned a lease of a ground floor flat in Stilton in April 2007. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable flats in Stilton with 100 year plus lease were valued around £218,000. The mid-range amount of ground rent was £45 billed quarterly. The lease termination date was on 19 November 2089. Given that there were 63 years outstanding we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including costs.

Stilton case:

Mr E Laurent completed a basement flat in Stilton in May 2009. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Stilton with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £55 invoiced monthly. The lease finished on 15 May 2100. Having 74 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.