St Ives leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying St Ives residential leaseholders to extend the terms of long leases. If you are a leasehold owner in St Ives you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a St Ives flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in St Ives with over 100 years remaining on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in St Ives can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 a wealth of experience 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.
Half a year ago Freddie, came dangerously close to the 80-year mark with the lease on his leasehold apartment in St Ives. In buying his flat twenty years ago, the unexpired term was of minimal bearing. Thankfully, he recognised he needed to take action soon on a lease extension. Freddie was able to extend his lease just under the wire in April. Freddie and the freeholder via the management company subsequently settled on sum of £5,500 . If the lease had slipped lower than 80 years, the price would have gone up by a minimum £850.
Last Spring we were called by Mr and Mrs. S Khan , who completed a first floor flat in St Ives in January 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in St Ives with a long lease were worth £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease ran out on 9 November 2080. Given that there were 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of expenses.
Mr Jonathan James bought a first floor flat in St Ives in May 2004. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in St Ives with a long lease were worth £227,800. The mid-range ground rent payable was £45 collected annually. The lease came to a finish in 2091. Given that there were 65 years unexpired we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.