Unfortunately that a Stilton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Stilton property prices.Where your lease has approximately ninety years left, you need to 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 falls under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Stilton will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Stilton with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Stilton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stilton valuers.
Jackson was the the leasehold owner of a 2 bedroom apartment in Stilton being sold with a lease of a few days over 61 years remaining. Jackson informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2014 we were called by Dr Caleb Garcia who, having took over the lease of a basement apartment in Stilton in May 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Stilton with a long lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ended on 22 July 2100. Having 74 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Dr Zachary Parker purchased a basement apartment in Stilton in November 2000. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable premises in Stilton with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed yearly. The lease termination date was on 24 July 2080. Given that there were 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus costs.