Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Stilton. Clearly, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Stilton have the legal entitlement to extend the lease for a further ninety years under legislation. Do give careful consideration before putting off your Stilton lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold premises in Stilton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works |
The lawyers that we work with procure Stilton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Evan, came seriously close to the eighty-year threshold with the lease on his basement apartment in Stilton. In buying his property two decades ago, the lease term was of little relevance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Evan extended the lease just under the wire last April. Evan and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,100.
Last Winter we were e-mailed by Dr G Watson , who completed a one bedroom flat in Stilton in June 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Stilton with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 collected per annum. The lease expired in 2104. Having 78 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Last year we were approach by Dr L Moore , who moved into a one bedroom apartment in Stilton in May 2005. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative premises in Stilton with an extended lease were worth £191,000. The average amount of ground rent was £65 collected quarterly. The lease finished on 19 March 2084. Taking into account 58 years left we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of expenses.