There is no doubt about it a leasehold flat or house in Stotfold is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Stotfold will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Stotfold leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Kian, started to get near to the 80-year threshold with the lease on his first floor apartment in Stotfold. Having purchased his home two decades ago, the lease term was of no relevance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Kian extended the lease just in the nick of time last July. Kian and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If the lease had dipped to less than 80 years, the sum would have become more exhorbitant by a minimum £1,075.
In 2011 we were contacted by Dr Y Anderson who, having bought a one bedroom flat in Stotfold in February 1998. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Stotfold with 100 year plus lease were in the region of £230,800. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2086. Having 60 years remaining we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 plus costs.
Mr E Kelly bought a garden apartment in Stotfold in January 2002. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Stotfold with a long lease were valued around £210,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed on 7 February 2106. Given that there were 80 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.