When it comes to domestic leasehold premises in Stotfold, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Leasehold owners in Stotfold with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has below eighty years left, under the current legislation the landlord can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Stotfold,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stotfold valuers.
Isaac was the the leasehold owner of a 2 bedroom flat in Stotfold on the market with a lease of a little over 59 years outstanding. Isaac informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
Last September we were e-mailed by Mr and Mrs. H Walker , who purchased a garden apartment in Stotfold in July 1995. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparable homes in Stotfold with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced annually. The lease ended on 2 March 2092. Having 68 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.
In 2011 we were approached by Mr and Mrs. R Morris who, having bought a first floor flat in Stotfold in January 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Stotfold with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2081. Given that there were 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus legals.