There is no doubt about it a leasehold property in Stilton is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 99 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Stilton will meet the qualifying criteria; however a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Daniel owned a studio apartment in Stilton being sold with a lease of a little over 72 years outstanding. Daniel informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2014 we were e-mailed by Ms Jordan Martinez who, having purchased a studio apartment in Stilton in October 2004. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative residencies in Stilton with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease concluded in 2086. Considering the 61 years outstanding we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.
Dr G Dupont took over the lease of a basement flat in Stilton in April 1998. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Stilton with 100 year plus lease were worth £260,000. The average ground rent payable was £50 invoiced per annum. The lease end date was in 2097. Given that there were 72 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.