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 early years due to the reduction being disguised by increases in the Stilton property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Stilton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Stilton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stilton valuers.
Off the back of protracted negotiations with the landlord of her garden flat in Stilton, Chantelle commenced the lease extension process as the eighty year threshold was quickly coming. The legal work completed in March 2014. The freeholder’s charges were restricted to below 450 GBP.
Mr Jamie White purchased a first floor apartment in Stilton in October 2005. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative flats in Stilton with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed in 2105. Given that there were 80 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
Last Autumn we were contacted by Dr E Thompson , who completed a one bedroom apartment in Stilton in March 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical properties in Stilton with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease ended in 2085. Taking into account 60 years remaining we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.