The market value of Stotfold leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than 80 years
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| 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 Stotfold can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 dealing with Stotfold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel was the the leasehold proprietor of a 2 bedroom apartment in Stotfold on the market with a lease of a few days over fifty eight years remaining. Gabriel on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2013 we were contacted by Dr U Dupont who, having completed a first floor flat in Stotfold in November 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Stotfold with a long lease were worth £275,000. The mid-range ground rent payable was £65 collected per annum. The lease concluded in 2094. Considering the 68 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Last Christmas we were contacted by Mr D James , who moved into a newly refurbished apartment in Stotfold in April 1995. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Stotfold with a long lease were in the region of £213,600. The mid-range amount of ground rent was £60 billed annually. The lease elapsed on 23 June 2083. Having 57 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.