Stilton leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Stilton will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Stilton with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with handle Stilton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Felix was the the leasehold proprietor of a high value apartment in Stilton on the market with a lease of just over fifty eight years left. Felix informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2014 we were approached by Dr Aarav Turner who, having purchased a purpose-built apartment in Stilton in February 2004. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Stilton with a long lease were valued about £245,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out on 7 August 2094. Having 68 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last month we were contacted by Ms Harriet Mercier , who purchased a recently refurbished flat in Stilton in February 2003. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar flats in Stilton with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed in 2105. Considering the 79 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.