The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in St Ives may extend the lease for a further 90 years under Leasehold Reform legislation. Please think carefully before delaying your St Ives lease extension. Putting off the costs today simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold premises in St Ives with over 100 years unexpired 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in St Ives can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring St Ives lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the freeholder of her ground floor flat in St Ives, Sophia initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction completed in May 2011. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. G Bailey , who bought a one bedroom apartment in St Ives in October 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar premises in St Ives with an extended lease were worth £200,800. The mid-range ground rent payable was £65 collected per annum. The lease lapsed on 19 May 2085. Having 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus fees.
In 2013 we were approached by Mr and Mrs. R Rogers who, having moved into a first floor apartment in St Ives in June 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in St Ives with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected quarterly. The lease termination date was in 2096. Having 71 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.