St Columb leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most St Columb tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in St Columb you must investigate if your lease has between seventy and 90 years left. There are compelling reasons why a St Columb flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in St Columb with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in St Columb,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 in-depth market knowledge and the close ties they enjoy with St Columb valuers.
Last Autumn Zachary, started to get close to the 80-year mark with the lease on his first floor apartment in St Columb. Having bought his property 19 years previously, the lease term was of little interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Zachary arranged for a lease extension just under the wire in July. Zachary and the freeholder via the management company ultimately settled on the final figure of £5,500 . If he not met the deadline, the premium would have gone up by at least £1,075.
Mr O Gunderson took over the lease of a ground floor flat in St Columb in September 2010. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative flats in St Columb with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 collected every twelve months. The lease terminated on 20 August 2088. Given that there were 63 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.
In 2009 we were phoned by Mr N Howard who, having purchased a studio apartment in St Columb in February 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable homes in St Columb with a long lease were worth £181,600. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2077. Given that there were 52 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.