Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Stony Stratford. Inevitably, the term of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Stony Stratford have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Stony Stratford lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Stony Stratford with in excess of one hundred years remaining on the lease are often referred to as ‘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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Stony Stratford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Stony Stratford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca was the the leasehold proprietor of a 2 bedroom flat in Stony Stratford being marketed with a lease of a few days over 61 years remaining. Luca informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2010 we were phoned by Mr and Mrs. K Davis who, having owned a purpose-built apartment in Stony Stratford in April 2004. The question was if we could approximate the price could be to extend the lease by ninety years. Comparative flats in Stony Stratford with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 invoiced per annum. The lease concluded in 2105. Taking into account 79 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Mr and Mrs. I Watson completed a recently refurbished apartment in Stony Stratford in February 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Stony Stratford with a long lease were in the region of £275,000. The average amount of ground rent was £65 collected per annum. The lease lapsed on 25 November 2094. Considering the 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.