Stilton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Stilton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Stilton you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| Santander | |
| Yorkshire Building Society |
Engaging our service will provide you increased control over the value of your Stilton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin owned a conversion apartment in Stilton on the market with a lease of fraction over fifty eight years remaining. Austin informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured an acceptable deal informally and sell the property.
Dr Rachael Ward bought a studio apartment in Stilton in July 2000. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar flats in Stilton with a long lease were valued about £173,800. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2081. Taking into account 55 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
Last Summer we were phoned by Ms O Flores , who owned a newly refurbished flat in Stilton in November 1998. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Stilton with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease concluded in 2092. Having 66 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.