On the balance of probabilities if you own a flat in St Ives you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in St Ives,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Ives valuers.
Hugo was the the leasehold owner of a high value apartment in St Ives on the market with a lease of fraction over sixty years left. Hugo informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Winter we were phoned by Dr H Pérez , who acquired a studio apartment in St Ives in May 2012. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable premises in St Ives with 100 year plus lease were valued around £193,400. The average ground rent payable was £65 collected annually. The lease came to a finish in 2084. Taking into account 59 years remaining we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.
Last month we were e-mailed by Dr Matthew Evans , who moved into a studio apartment in St Ives in April 1998. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Identical residencies in St Ives with a long lease were worth £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed on 1 July 2095. Considering the 70 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.