The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Stotfold have the right to extend the lease for a further ninety years in accordance with statute. Do think carefully before delaying your Stotfold lease extension. Postponing the costs today simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold properties in Stotfold with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Skipton Building Society | |
| Virgin |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Jake was the the leasehold owner of a 2 bedroom flat in Stotfold being sold with a lease of just over 59 years left. Jake on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were contacted by Dr Amber David who, having moved into a first floor flat in Stotfold in March 2012. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable properties in Stotfold with 100 year plus lease were in the region of £206,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease finished in 2082. Considering the 56 years unexpired we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.
In 2011 we were phoned by Mr R David who, having bought a ground floor apartment in Stotfold in January 1997. The question was if we could approximate the premium would be for a ninety year extension to my lease. Identical properties in Stotfold with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease terminated in 2102. Having 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.