Main reasons to start your Stotfold lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Main reasons to commence your Stotfold lease extension today:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/stotfold">Stotfold</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p> As the the remaining lease term of a Stotfold residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Stotfold will qualify for this right; that being said a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
<h4>An extended lease has roughly the same value as a freehold</h4>
<p>
Leasehold premises in Stotfold with more than 100 years unexpired on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it. <h4>Lenders will not loan monies on a short lease</h4> Mortgage Lenders differ in their lending criteria. Some set the bar at seventy five years outstanding on the lease; others may be prepared to lend with anything in excess seventy years. Below 60 years, it may be problematic to get a mortgage in the first place.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Chelsea Building Society</td>
<td> 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.
</tr>
<tr>
<td>Godiva Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Stotfold lease extension solicitors or enfranchisement solicitors
</h4>
<p>
Lease extensions in Stotfold can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
<p>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.
<h4>
Stotfold Lease Extension Example Cases:
</h4>
<h5> Blake, Stotfold, Bedfordshire,</h5>
<p>
Blake owned a 2 bedroom flat in Stotfold on the market with a lease of a few days over 61 years outstanding. Blake informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
<h5>Stotfold case:</h5>
<p>
In 2014 we were e-mailed by Mr and Mrs. C Sánchez who, having moved into a first floor apartment in Stotfold in July 1997. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar properties in Stotfold with an extended lease were in the region of £191,400. The average ground rent payable was £55 billed annually. The lease ended on 23 January 2080. Taking into account 54 years unexpired we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus fees.
<h5>Stotfold case:</h5>
<p>
In 2012 we were called by Dr S Mason who, having acquired a garden flat in Stotfold in February 2001. The question was if we could estimate the premium could be for a 90 year lease extension. Similar properties in Stotfold with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease finished on 26 June 2100. Considering the 74 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
</div>