The market value of a leasehold property in Stilton depends on how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded in advance of the eighty year threshold. Statute entitles Stilton qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Stilton with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Stilton can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Stilton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Thomas, started to get near to the 80-year mark with the lease on his garden flat in Stilton. In buying his home two decades ago, the unexpired term was of minimal bearing. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Thomas arranged for a lease extension just under the wire last April. Thomas and the freeholder via the managing agents eventually settled on a premium of £5,500 . If the lease had fallen to less than 80 years, the premium would have become more costly by a minimum £1,025.
Last Winter we were contacted by Dr K Walker , who purchased a purpose-built flat in Stilton in October 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Stilton with an extended lease were valued about £210,600. The average amount of ground rent was £45 billed yearly. The lease finished on 4 March 2088. Given that there were 62 years outstanding we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.
Last Autumn we were e-mailed by Dr J Thomas , who owned a basement apartment in Stilton in September 2002. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar flats in Stilton with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 billed per annum. The lease lapsed in 2099. Considering the 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.