Stilton leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Flat owners in Stilton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Stilton can be a difficult process. We recommend you procure 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.
Joseph owned a 2 bedroom apartment in Stilton on the market with a lease of a few days over 59 years unexpired. Joseph informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2011 we were e-mailed by Ms Danielle Ward who, having took over the lease of a recently refurbished apartment in Stilton in March 2006. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Stilton with an extended lease were worth £210,600. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed in 2086. Taking into account 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.
In 2011 we were e-mailed by Mr and Mrs. W Hernández who, having completed a garden flat in Stilton in January 2008. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Stilton with a long lease were valued around £265,000. The average ground rent payable was £50 billed annually. The lease ran out in 2097. Given that there were 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.