Chances are that where you own a flat in Stilton you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Stilton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her garden apartment in Stilton, Madeleine initiated the lease extension process just as the lease was nearing the all-important eighty-year deadline. The transaction was finalised in May 2008. The landlord’s fees were negotiated to about 600 pounds.
In 2014 we were phoned by Mrs Alisha Petit who, having took over the lease of a studio flat in Stilton in February 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical flats in Stilton with a long lease were valued about £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease lapsed on 28 June 2076. Considering the 51 years left we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including costs.
In 2011 we were approached by Mr and Mrs. W Bailey who, having purchased a first floor flat in Stilton in April 1996. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar homes in Stilton with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced annually. The lease ran out on 22 July 2087. Given that there were 62 years outstanding we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.