Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in St Ives. Inevitably, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in St Ives have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful attention before putting off your St Ives lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in St Ives with in excess of 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in St Ives,the lease extension lawyers 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 Ives valuers.
James was the the leasehold proprietor of a 2 bedroom flat in St Ives on the market with a lease of fraction over 61 years left. James informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were James to exercise his statutory right. James procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were phoned by Dr Toby Thomas who, having acquired a garden apartment in St Ives in October 1997. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical properties in St Ives with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 collected annually. The lease lapsed in 2097. Considering the 72 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
In 2014 we were called by Mr and Mrs. T Girard who, having bought a purpose-built flat in St Ives in August 2002. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Identical premises in St Ives with an extended lease were in the region of £256,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease expiry date was on 23 September 2077. Given that there were 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of fees.