Main reasons to commence your Stotfold lease extension

Main reasons to start your Stotfold lease extension today:

A Stotfold lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Stotfold is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed well before the eighty year mark. Statute entitles Stotfold qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

Stotfold property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Stotfold with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not grant a mortgage on a short lease

Lending institutions have set criteria when loaning monies charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below 75 years as adequate security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Stotfold home.

Why use us for your lease extension in Stotfold?

Regardless of whether you are a tenant or a landlord in Stotfold,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stotfold valuers.

Stotfold Lease Extension Example Cases:

Kian, Stotfold, Bedfordshire

In 2014 Kian, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Stotfold. In buying his property 19 years previously, the lease term was of minimal importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Kian arranged for a lease extension at the eleventh hour last June. Kian and the landlord in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the premium would have gone up by at least £975.

Stotfold case:

Last Spring we were e-mailed by Mr and Mrs. A Rodríguez , who owned a first floor flat in Stotfold in April 2007. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical residencies in Stotfold with a long lease were valued about £267,600. The average amount of ground rent was £65 billed yearly. The lease elapsed in 2093. Taking into account 67 years outstanding we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including expenses.

Stotfold case:

In 2011 we were approached by Mr and Mrs. V Davies who, having moved into a basement apartment in Stotfold in March 2006. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in Stotfold with a long lease were valued about £206,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease expiry date was in 2082. Given that there were 56 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.