It’s a harsh certainty that a Stotfold residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Stotfold property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips below 80 years, you will end up paying half 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 additional 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 will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Stotfold with over 100 years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Stotfold,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stotfold valuers.
Following lengthy negotiations with the landlord of her two bedroom flat in Stotfold, Elizabeth initiated the lease extension process as the 80 year threshold was quickly coming. The legal work completed in May 2005. The landlord’s fees were kept to an absolute minimum.
In 2011 we were approached by Dr I García who, having purchased a recently refurbished apartment in Stotfold in February 2000. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Stotfold with an extended lease were in the region of £265,200. The average ground rent payable was £65 collected monthly. The lease ran out on 14 August 2092. Given that there were 66 years unexpired we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including professional charges.
In 2010 we were e-mailed by Mr and Mrs. O Brooks who, having bought a studio flat in Stotfold in January 1999. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Stotfold with 100 year plus lease were worth £198,800. The average ground rent payable was £55 invoiced quarterly. The lease came to a finish on 4 November 2081. Taking into account 55 years outstanding we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.