Unfortunately that a Stilton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Stilton property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. Most flat owners in Stilton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Stilton with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in Stilton can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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.
Following lengthy discussions with the freeholder of her basement apartment in Stilton, Hannah started the lease extension process as the eighty year threshold was quickly coming. The lease extension was concluded in April 2009. The landlord’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Mrs Maisie Fournier who, having owned a studio flat in Stilton in January 2009. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Stilton with a long lease were worth £265,000. The mid-range ground rent payable was £50 collected quarterly. The lease termination date was on 19 August 2098. Having 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Spring we were e-mailed by Mr R David , who owned a studio flat in Stilton in August 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Stilton with an extended lease were worth £264,000. The mid-range ground rent payable was £60 collected every twelve months. The lease ended on 28 October 2078. Having 53 years remaining we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including expenses.