As the the remaining lease term of a Stotfold residential lease lessens so does its value and therefore the value of your property. If the residual term has, over 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Stotfold will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Stotfold,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stotfold valuers.
During the course of the last few months Hugo, started to get near to the 80-year threshold with the lease on his ground floor apartment in Stotfold. In buying his flat two decades ago, the unexpired term was of minimal importance. Fortunately, he recognised he needed to take action soon on Extending the lease. Hugo extended the lease at the eleventh hour last September. Hugo and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £875.
In 2012 we were approached by Dr Jack Vincent who, having acquired a newly refurbished flat in Stotfold in July 2009. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Stotfold with a long lease were valued around £285,000. The mid-range ground rent payable was £45 collected per annum. The lease ended on 19 January 2097. Considering the 71 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Mr Matthew Hill purchased a newly refurbished apartment in Stotfold in March 2011. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable residencies in Stotfold with an extended lease were valued around £230,800. The mid-range amount of ground rent was £60 collected per annum. The lease ran out on 19 March 2086. Taking into account 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 plus legals.