Unfortunately that a Stotfold residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Stotfold property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Stotfold will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB |
The conveyancing solicitors that we work with procure Stotfold lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Kyle owned a 2 bedroom flat in Stotfold being sold with a lease of a few days over 59 years left. Kyle informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were contacted by Mr and Mrs. A Leroy who, having was assigned a lease of a purpose-built apartment in Stotfold in August 2011. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in Stotfold with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 collected annually. The lease end date was on 14 February 2105. Considering the 79 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Dr M Lewis was assigned a lease of a one bedroom flat in Stotfold in August 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Stotfold with an extended lease were valued around £275,000. The average ground rent payable was £65 collected per annum. The lease expired in 2094. Considering the 68 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.