The market value of a leasehold property in Stilton depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed prior to the 80 year cut off point. Statute entitles Stilton qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Stilton with more than 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 property. In such situations there is often little upside in 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. |
| 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 are not acceptable. 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; |
| 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. |
Lease extensions in Stilton can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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.
18 months ago William, started to get close to the 80-year mark with the lease on his ground floor apartment in Stilton. Having bought his home two decades ago, the length of the lease was of little concern. Fortunately, he realised he needed to take steps soon on a lease extension. William arranged for a lease extension just ahead of time last March. William and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the price would have escalated by a minimum £1,125.
In 2013 we were e-mailed by Mr and Mrs. G Patel who, having moved into a one bedroom apartment in Stilton in August 2005. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Stilton with an extended lease were valued around £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease came to a finish in 2093. Given that there were 67 years left we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.
Last Summer we were called by Mr Rory Williams , who was assigned a lease of a first floor flat in Stilton in April 1996. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable residencies in Stilton with a long lease were in the region of £280,000. The average ground rent payable was £55 billed every twelve months. The lease concluded on 21 February 2104. Considering the 78 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.